Aussies favour domestic ETPs
Australian equity exchange traded products (ETPs) almost doubled the investment in international equity ETPs in October on the back of uncertainty in international equity markets and the US election, according to VanEck.
The asset manager said total inflows into Australian equity ETPs were at $191 million, compared to international equity ETPs at $101 million in October, and year-to-date Australian equity ETP inflows were at $959 million, compared to $891 million for international equity ETPs.
VanEck Australia managing director, Arian Neiron, said: "Australia's ETP sector is a barometer of investor appetite. October inflows reflect Australian investors' uncertainty in international equity markets and a strong home country bias, particularly in the lead up to the US election outcome this week and with continued speculation about a possible Fed rate hike at the end of the year".
"Gold ETPs are on a positive trajectory. No matter what the outcome of the US election is this week, market uncertainty bodes well for gold. Should the price of gold bullion rally after the election it will be positive for gold mining stocks as they have traditionally outperformed gold bullion when the bullion price rises," he said.
Neiron noted that investors were also increasingly investing in smart beta ETPs to access investment strategies that offered targeted exposures.
"Smart beta strategies enable investors to achieve a targeted outcome by actively identifying a factor, or investment approach they want in their portfolio while enjoying index-like features," he said.
We expect this trend to continue into 2017 as advisers and investors gain greater understanding of and access to smart beta ETPs."
Recommended for you
Franklin Templeton has announced it will close its Global Alpha Core Bond Fund, having changed two fixed income funds in its Brandywine range last week.
Investment solution provider Channel Capital has appointed James Archer as its latest distribution director, joining from Pinnacle Investment Management.
Bennelong Funds Management has signed a memorandum of understanding with US private credit manager Monroe Capital to distribute its products in Australia.
Global equity manager Talaria Capital has appointed a Sydney-based sales director as it grows its distribution presence across Australia.
