ETF market hit record high
Growth in the Australian exchange-traded fund (ETF) market is continuing to rise as it hit a record high of $12.4 billion in assets under management in August, according to BetaShares.
The latest BetaShares Australian ETF Review, showed that the ETF market increased by 1.9 per cent (or $234 million) in August, while the share market remained stagnant.
The review showed that the EFT market had thrived over the last 12 months, with market cap growth rising by $3.9 billion.
BetaShares managing director, Alex Vynokur, said that part of the attraction the ETFs hold was that they are "a convenient way to build sensibly diversified portfolios that include a wide range of asset classes".
"Their attraction is independent of the fluctuations in the Australian share market," he said.
"The recent development of the ETF market suggests that larger numbers of investors are becoming involved, investing money into established products.
"We expect continued inflow into existing products, however, we additionally expect industry growth to be assisted by new and innovative investment solutions that are anticipated to become available on the ASX (Australian Securities Exchange) through the last four months of 2014."
AUTHOR
Nicholas O'Donoghue
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.
