Aussie ETP market sees record January
The Australian exchange traded product (ETP) market saw record net inflows of $574.4 million in January, which made it its highest intake on record for the first month of the year, according to VanEck.
The ETP industry grew 16 per cent to $42.1 billion compared to the corresponding period last year, with exchange traded funds (ETFs) accounting for 90 per cent of the total assets under management (AUM).
International equity ETPs attracted the greatest flows in January, 2019, with $269.5 million in net flows, compared to $163.5 million for Australian equities.
Following that, AUM for international equity ETPs accounted for 44 per cent of the ETP market, compared to 37 per cent for Australian equities.
Over the 12 months to 31 January, net flows of $3.1 billion went to international equity ETPs, overtaking the $1.7 billion flowing to Australian equity ETPs.
The firm noted that the lower Australian dollar in 2018 also helped to boost returns from offshore ETPs.
VanEck said it saw investors continue to diversify their portfolios into offshore asset classes, primarily developed market ETPs, which managed to attract $223 million of flows in January.
By strategy, smart beta ETFs were growing in popularity for both equities and fixed income asset allocations, with monthly net flows of $149 million.
AUTHOR
Oksana Patron
Recommended for you
Selfwealth has provided an update on the status of its scheme implementation deed with Bell Financial Group as well as whether rival bidder Svava remains in the picture.
Magellan Financial Group has reported its first half FY25 results while appointing a new chief financial officer and promoting Sophia Rahmani to chief executive.
Schroders Australia has launched two active ETFs and plans to further expand its listed range over the year ahead.
Platform Netwealth has reported its financial results for the first half of FY25, reporting an 80 per cent increase in net flows, with its CEO viewing a “huge opportunity” from private assets.
