Issuers are increasingly expanding their exchange-traded funds (ETFs) into international markets, with the global market reaching $20 trillion last year, as firms like Janus Henderson and Fundstrat seek to capitalize on the growing demand for ETFs, particularly in Europe. This trend is driven by a shift away from mutual funds, tax benefits associated with ETFs, and the potential for significant market growth as more mutual fund issuers consider entering the ETF space.
For an investor focused on expanding their portfolio, the key insight is the significant growth potential in international ETF markets, especially through UCITS-regulated products. These products not only offer geographic diversification but also present tax advantages over mutual funds, such as avoiding an additional 15 basis points typically incurred with US equities in mutual funds. This trend towards international ETFs could be a strategic opportunity to consider for future investments.