ETF use to grow in Netherlands

ETF use to grow in Netherlands

Exchange traded funds (ETFs) will grow in the Netherlands as financial advisors move to build portfolios that use ETFs and mutual funds together, according to BlackRock and Euroclear Bank.

The comment follows the inclusion of 50 BlackRock iShares products on Euroclear’s FundSettle fund processing platform. These are the first ETFs to be included on the platform and the service will initially be made available in the Netherlands. The firms are exploring ways to offer ETFs in this way to other European markets.

According to BlackRock, assets held in European ETFs have grown in the past five years to $373bn at the end of March 2013 compared with $133bn at the end of 2007.

Leen Meijaard, Head of iShares Sales in Europe, the Middle East and Africa, said: “There is great interest in ETFs at the moment as the market moves towards a model without retrocessions and many investors want to be able to buy ETFs like mutual funds through their bank or wealth manager. Adding these iShares to FundSettle’s platform will help Dutch investors to build and manage a portfolio in a straightforward way.”

The FundSettle service allows investors to buy and sell shares in ETFs in the same way as their mutual fund investments, according to the two firms.