Smart beta is set to be the biggest source of growth for ETF products in Europe, according to consultant EY’s Global ETF Survey published in November.

The funds, also known as "enhanced beta", track a range of alternatives to traditional indices, which weight their constituents by their market capitalisation, to achieve better returns or lower risk. They also promise access to strategies such as momentum or value, previously the preserve of active managers - at a fraction of the price. In Europe, EY noted: "Enhanced beta dominates the innovation debate."