German asset manager DWS Group has pipped investment behemoth BlackRock to be named the best exchange traded fund (ETF) issuer of 2023, according to a new set of rankings published by ETF Stream, an ETF analysis and investment insights house. Meanwhile, UBS Asset Management and State Street Global Advisors failed to make the top 10 after suffering noticeable outflows.

The inaugural rankings, titled ETF Issuer Power Rankings 2023, revealed DWS had the strongest year of all 25 ETF European issuers assessed when measured across four performance metrics, namely: ‘asset gathering’, ‘revenues’, ‘activity’ and ‘theme presence’. The league table assesses which asset managers displayed the strongest momentum on a relative and absolute basis versus their competitors over the 12 months.

DWS scored the highest on ‘activity’ and ‘theme presence’ in 2023, after capturing $22.5bn inflows and launching 46 new ETFs over the course of the year. BlackRock, which has a 43.9% share of the European ETF market, came second after a strong year from a revenue-generating perspective. The world’s largest asset manager saw $71bn net new assets into European-listed ETFs in 2023 amid increased investor demand for fixed income ETFs. Overall, DWS was more active in the market than BlackRock, launching the most ETPs in 2023 and enjoying stronger relative inflows.

The results come after another stellar year for passive investment inflows. European-listed ETPs saw $158bn inflows last year, up from $84.5bn in 2022, according to data from ETFbook.

In terms of the performance metrics used by the rankings, ‘asset gathering’ represents a combination of absolute and relative (to AUM) flows in 2023, while ‘revenues’ constitutes a combination of absolute revenue from fees and revenue per ETF. ‘Activity’ measures the number of ETP launches and European firsts, while ‘theme presence’ measures absolute flows across nine segments, including equities, fixed income, commodities, ESG, emerging markets, thematics, sectors, actives, and factors.

Rounding off the top three ETF issuers was J.P Morgan Asset Management, which enjoyed a particularly strong year in ‘asset gathering’ following a spike in demand for active ETFs. The US giant saw $5.7bn net new assets last year, cementing its position as the dominant active ETF issuer in Europe, with a 42.5% market share.

At the opposite end of the spectrum, UBS Asset Management and State Street Global Advisors failed to make the top 10 after a combination of outflows and low activity weighed on their rankings. The Swiss asset manager suffered $561m of outflows over the year, which may be attributable to its forced acquisition of rival Credit Suisse Asset Management’s ETF range.

Commenting on the findings, Tom Eckett, analyst at ETF Stream, said: “Even industry giants like BlackRock cannot take their market position for granted. Picking the right ETF issuer is a crucial consideration in the product selection process for professional investors – especially as more niche players enter the already saturated market. Above all else, these findings reveal that building strong momentum in this competitive market is a complex and multifaceted endeavour.”

View the full ETF Issuer Power Rankings 2023 results here.

Source: ETF Stream