Australian ETP industry grows to $1.62bn in September
The Australian exchange traded product (ETP) industry saw record net flows of $1.62 billion in September and the industry grew 33% to $55.9 billion over the 12 months, according to VanEck ETF IQ Scorecard.
Further to that, the expectation was that the market was going to see a record year and was likely to reach $60 billion by the end of December as it had already surpassed 2017 levels.
As far as the asset classes were concerned, Australian equity ETPs managed to attract the greatest net monthly flows of $658.7 million which put it ahead of international equities ($328.4 million).
At the same time, Australian fixed income ETPs proved to be popular among investors and managed to attract $234.5 million while smart beta ETFs monthly net inflows stood at $228.4 million.
According to VanEck, the relatively high level of flows to fixed income and cash ETPs reflected investors’ more defensive portfolio positioning due to ongoing equity market volatility and the ongoing US-China trade war.
The report also found that smart beta ETFs had steadily gained market share since 2015 as investors chased more targeted investment outcomes as well as asset and geographic diversification.
Exchange traded funds (ETFs) made up around of 90% of total ETP assets under management.
AUTHOR
Oksana Patron
Recommended for you
Ten Cap has announced it will launch its first active ETF on the ASX later this month, expanding retail access to its flagship Australian equities strategy.
Flows into cash and fixed income ETFs rose by 46 per cent in October with investors particularly demonstrating a preference for Australian credit ETFs as they move away from AT1 bank hybrids.
Having identified Australia as a growth market, J.P. Morgan Asset Management has collaborated with Betashares to offer two multi-asset managed portfolios on its Direct platform, the first funds on the platform from an external manager.
First Sentier has announced it will transition the Stewart Investors investment management responsibilities to its affiliate investment team in light of three senior portfolio manager exits.
