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
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
Fund managers are entering 2025 with the most bullish sentiment since August 2021 and record high allocations to US equities, thanks to the incoming Trump administration.
An independent expert has ruled the Perpetual deal with KKR is no longer in the best interest of shareholders in light of the increased tax liabilities.
