ETFs continue to attract large inflows
Exchange traded products (ETP) have continued their rapid growth adding $600 million in funds under management for the month of November and $4.4 billion in the last 12 months to pass the $14 billion mark.
Sixty per cent of the growth in November came from new inflows with the remainder of the growth coming off the back of strong growth in global equity markets pushing the level of funds in ETPs to $14.2 billion which is an increase of 21 per cent from $11.76 billion since June of this year.
BetaShares managing director Alex Vynokur said that US equities attracted the highest levels of inflows in November at $200 million with investors looking towards the positive performance of the US market.
"US equities exchange traded funds experienced strong inflows following the continuing rebound in those markets, as investors continue to make use of ETFs as a cost effective and convenient way to access the US market," Vynokur said.
"International equities have generated a significant amount of interest as a product category this year, with four international funds launching on the ASX in the last three months alone."
Growth was also driven by the addition of three new ETPs in November taking the total number of ETPs offered on the Australian Stock Exchange to 101.
Market Vectors ETFs and Van Eck Global in Australia managing director Arian Neiron said the trend of new ETPs would continue into 2015 as as investors increasingly employ ETFs to diversity and access new regions for equity investments.
"We expect new ETPs to be launched on the on the ASX in the first half of next year, further broadening the investment choice for Australian investors. On the investing front, we expect investors to continue to leverage the strong growth in global equity markets, particularly the recovery in the U.S. and European economies.
"Self-managed superannuation funds will continue to be attracted by the low cost and transparent structure of ETPs and we expect to see the continued adoption of ETPs by financial advisers in 2015," Neiron said.
AUTHOR
Jason Spits
Recommended for you
The $673 billion global investment manager has appointed a former Zenith sales head as it seeks to expand its reach in the Australian wealth management market.
Fund managers may be operating in a squeezed environment, but a salary guide shows they are willing to pay up for specialist talent to diversify their fund range.
Reach Alternative Investments has entered into a strategic partnership with Russell Investments to bolster its wholesale private markets offering for financial advisers and investors.
Boutique investment consulting and research house Genium Investment Partners has announced a senior appointment to drive further growth in its research ratings business.
