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
The alternative investment manager has signalled its intentions to repackage an existing fund into a second private equity vehicle, targeting both listed and unlisted opportunities.
The acquisition of Mason Stevens by Adamantem Capital has reached completion, as the wealth platform looks to increase investment into its services for Australian wealth practices.
Platinum Asset Management and VanEck have both announced name changes to multiple of their ETFs to clarify their complexity.
Active ETFs are gaining traction in Asia-Pacific as wealth managers seek to blend the low-cost fees of passive with active management.
