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'The Future of Exchange Traded Funds: The Next Trillion' debate, hosted by State Street, looked at concerns in the industry, ETF structures and the implications for investors. Scott Ebner, global head of ETF product development at SPDR, said: “The market needs to stop fighting against each other over details and work together to remind clients of the overall benefits of ETFs. The debate has gone on enough, we now need to focus on the information that investors need to make informed decisions.”
Debate has been raging in Europe in recent months over the distinction between synthetic and physical ETFs, with synthetic funds coming under criticism over their use of swaps and whether they are suitable for retail clients.
Ebner said: “Both synthetic and physical ETFs have their place. However, education is key. If investors don’t understand what they are buying, then they shouldn’t buy it and that is when a swap becomes potentially too complex for some investors.”
The debate heard that consolidation is likely to be the next step for the ETF market.
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