Aussie ETF inflows top $500 million

ETFs/equity-markets/institutional-investors/

17 January 2012
| By Staff |
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While the general equity markets dropped significantly over the course of 2011, Australian exchange traded fund (ETF) net inflows have topped $500 million.

That is according to BetaShares Australian ETF Review for December, which found that the inflows could be attributed to 14 new products listed over the course of 2011, bringing the total number of ETFs available to 59.

These figures reflect the state of the global ETF market, as well as the continued migration of investor capital from managed funds into ETFs, according to BetaShares head of investment strategy, Drew Corbett.

He said the results also pointed to a "greater acceptance" of ETFs in the Australian marketplace.

"As product choice widens, investors are now increasingly considering ETFs when making strategic asset allocation decisions," Corbett said.

However, there are still some key gaps when comparing Australia to international markets, BetaShares stated.

Australia still lacks fixed income ETFs, which BetaShares predicted would be resolved in 2012, and secondly, the underutilisation of ETFs by institutional investors compared with overseas markets, the company stated.

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