(Bloomberg) Being in the hottest part of the investment universe doesn’t necessarily pay.Exchange-traded funds, or ETFs, based in Europe have doubled assets in the past five years to 550 billion euros ($584 billion), though the market remains so fragmented that less than a third of them are big enough to make money for the manager, based on figures from U.S. company Vanguard Group Inc.
The proliferation of ETFs means it will be a case of survival of the fittest as Europe catches up with the U.S., where the average size of a fund is about $1.4 billion compared with $260 million across the Atlantic.
