ETF professionals looking away from the established players

The exchange-traded funds (ETFs) market in Europe is beginning to look a little more crowded, as new entrants attempt to wrestle a bigger piece of the pie and try to make iShares' crown sit a little more uneasily. Not surprisingly, these fresh-faced players are also looking to poach staff.

iShares, the BlackRock-owned ETF provider, has long been the dominant force in the sector. But, despite seeing its assets under management swell, its market share has slipped from 49% to 33% since 2006, according to figures from Deutsche Bank.

Part of this is down to relatively new entrants - such as Source and ETF Securities - but the likes of Credit Suisse, Deutsche Bank, HSBC, Commerzbank and Lyxor have also been attempting to grab market share.

"The market is growing and people want a piece of it," Nizam Hamid, head of sales strategy for iShares in Europe told the FT. "The barriers to entry can be low and the cost of sitting on the sidelines is very high."

In short, those with ETF expertise have a lot more career options open to them, something headhunters aren't afraid to exploit - especially when it comes to recruiting from iShares.

"At the junior level, candidates are often frustrated at the lack of advancement opportunities available due to the proliferation of people in middle management," says one specialist ETF headhunter. "In career terms, it's like driving down a narrow country lane, stuck behind a tractor."

This doesn't, however, mean that people are heading out in droves by any means, but competitors are keen to lure away any disillusioned employees. Does this mean ETFs are supplying bountiful employment opportunities? Not entirely.

"It's a fairly buoyant market currently, particularly for those in product development and sales roles who are increasingly moving away from the more established players," says Chris Sevenoaks, an ETF headhunter at Healy Hunt. "It's not just about the financial packages on offer, but rather than candidates are being offered a broader spectrum of cultural environments to work in."