Do ETF Share Classes Open Door for Mutual Fund Giants?

HSBC AM’s Irish gambit may be the proof of concept needed to tempt legacy active managers into ETFs.

Reviewed by: Lisa Barr
Edited by: Lisa Barr

LONDON − ETF share classes have come into sharp focus with the coincidence of Vanguard’s patent expiring in the US and HSBC Asset Management announcing plans to launch ETF share classes of its mutual funds in Ireland. The question now is whether the news is just creating buzz among the pointy heads in ETFs or whether a doorway has opened for a rush of active IP to enter the market.

In its 2023 annual ETF survey, Brown Brothers Harriman (BBH) singled out active ETFs as a key driver of its $30trn ETF assets under management (AUM) forecast by 2033. However, this story has only started to meaningfully play out in the US as investor rotations from active mutual funds gathered pace since 2019...

This article first appeared in ETF Insider, ETF Stream's monthly ETF magazine for professional investors in Europe. To read the full article, click here.

Jamie started at ETF Stream as a reporter in January 2021. Previously, he was a senior journalist at the UK Investor Magazine, Investment Observer, UK Startup Magazine and UK Property Journal. He holds an undergraduate degree in politics and international relations, and a postgraduate degree in ethics.