ETFs have 'enormous runway' for growth, says BlackRock's Samara Cohen

ETFs have “enormous runway” for growth, says BlackRock's Samara Cohen

• ETFs could revolutionize India's markets, says BlackRock's Cohen.
• ETF adoption in India is low, with assets at only 2% of equity market value.
• Improved market structure and access can boost ETF growth and diversification

Did our AI summary help?

ETFs have already transformed markets globally and could do the same in India, according to Samara Cohen, Senior Managing Director, Global Head of Market Development for BlackRock. She was speaking at Samvad 2026 event in Mumbai on January 16.

“Investment funds like mutual funds and ETFs have been transformative around the world, and also in India, helping investors move from owning individual shares with risks concentrated in a single company to accessing broader, global, diversified opportunities,” Cohen said.

She said expanding index investing and ETFs should be a priority for India’s capital markets. “Expanding India’s index investing and ETF ecosystem is critical,” she said.

While ETF assets are growing, Cohen noted that adoption remains limited. “While ETF assets are growing, they remain concentrated in a handful of funds and are primarily institutional in users, and the runway ahead is enormous,” she said.

Comparing India with global markets, she added, “Around the world, ETFs represent 5 to 15 percent of equity market capitalization, but in India, ETF assets total just over 100 billion, or around 2 percent of the equity market.”

Cohen emphasized the importance of market structure in supporting ETF growth. “An improved stock borrow and lending framework will support a balanced, two-sided market,” she said.

“This will increase cash market liquidity, especially beyond the top 100 names. It will strengthen hedging capabilities and improve secondary market liquidity.”

She also pointed to the role of derivatives markets. “India’s derivatives markets are well-developed and will be a key dimension of a healthy ETF ecosystem,” Cohen said, adding that ETFs supported by options markets demonstrate “deeper on-exchange liquidity, tighter spreads, and more competition between market makers.”

On fixed income, Cohen said better market access could enable new products. “This will enable the development of a fixed-income ETF ecosystem, making it easier for individuals to diversify their fixed-income investments.”