In contrast, US asset managers are winning a greater share of European assets and now manage nearly half of European assets at 47 per cent, up from 40 per cent five years ago, according to Brussels-based think-tank Bruegel.
He noted that American groups such as BlackRock and Vanguard have been “propelled by their consolidation of the region’s [exchange traded funds] market, now 64 per cent under American control”.
That's the problem. If the ETFs have more than 50% they can tell the European companies e.g. to use American hyperscalers or to build new plants outside of the EU.
What do you mean? ETFs don't necessarily control all companies. So some Europeans could still be in control. But 47% of all assets suggests that the US already control much.
8 Comments
plyth@feddit.org · 11 pts · 8d
https://en.wikipedia.org/wiki/Exchange-traded_fund
Not to forget that the ETFs do the voting and control the board and management.
AviAdi@lemmy.world · 11 pts · 8d
EU becoming the vassal state of US interests, this is what happens when the people of Europe fail to invest in their own interests
captain_aggravated@sh.itjust.works · 6 pts · 8d
No it isn't. It has always been since its formation.
DmMacniel@feddit.org · 5 pts · 8d
I doubt that the people of Europe who invest in ETFs actually care what they are investing in.
plyth@feddit.org · 3 pts · 8d
That's the problem. If the ETFs have more than 50% they can tell the European companies e.g. to use American hyperscalers or to build new plants outside of the EU.
copacetic@discuss.tchncs.de · 3 pts · 8d
The people of the USA have a lot more money to invest. We need our money to pay for US tech after all.
HowRu68@lemmy.world · 1 pts · 8d
UnfortunateShort@lemmy.world · 3 pts · 8d
Wait, but Europeans are probably holding significant shares of said investment corporations... Did they take that into account?
plyth@feddit.org · 1 pts · 8d
What do you mean? ETFs don't necessarily control all companies. So some Europeans could still be in control. But 47% of all assets suggests that the US already control much.