ETF industry grows $1b in February
The Australian exchange traded fund (ETF) industry increased by $1 billion in February, the largest in a single month, according to a new BetaShares review.
This record also contributed to the record high of $16.8 billion in funds under management (FUM). The ETF report found the key contributors to the growth were overall appreciation in value of Australian and global equities.
"In terms of product sectors, exposures to global developed market equities received the strongest inflows throughout the month, with a mix of both US and global equities products receiving strong flows," managing director of BetaShares, Alex Vynokur, said.
"With a growing array of products for investors to make use of in different market conditions we believe the industry is on track to meet or exceed $21 to $23 billion FUM by the end of the year."
Four new products were introduced to the market by UBS in February and were marketed as Australia's first ‘ethical' ETFs.
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Clime Investment Management has welcomed an independent director to its board, which follows a series of recent appointments at the company.
Ethical investment manager Australian Ethical has cited the ongoing challenging market environment for its modest decrease in assets over the latest quarter.
Commentators have said Australian fund managers are less knowledgeable compared with overseas peers when it comes to expanding their range with ETFs and underestimating the competition from passive strategies.
VanEck is to list two ETFs on the ASX next week, one investing in residential mortgage-backed securities and the other in Indian companies.
