Asset managers expand ETF focus through hiring and innovation

Major asset management firms are intensifying their focus on the Exchange-Traded Fund (ETF) market through strategic hiring, product innovation, and structural engineering.

Fidelity International is expanding its ETF business by hiring specialists in product strategy, capital markets, and distribution to capitalize on the growth of actively managed ETFs in Europe. The firm currently manages approximately $12 billion across nearly 20 active ETFs, positioning itself as Europe’s second-largest provider in this sector behind JPMorgan.

Goldman Sachs Asset Management is also increasing its emphasis on ETFs to capture new capital flows. However, the firm faces challenges from regulatory hurdles, noting that SEC filings, exchange approvals, and tax clarifications can create bottlenecks that slow the launch of new products.

In terms of product design, Neos is utilizing ETF structures as an engineering platform. The company is focusing on combining options overlays with tax-efficient rebalancing to improve after-tax returns and mitigate downside risks for investors.