ETFs set for record year: BetaShares
A record-breaking start to 2015 points to a strong year for Australia's exchange traded fund (ETF) industry, BetaShares managing director, Alex Vynokur, believes.
Australian Securities Exchange (ASX) traded ETFs hit a high of $15.7 billion in funds under management (FUM) at the end of January, with the industry growing by single month record of $955 million in January.
The BetaShares Australian ETF Review for January reported that the record start to the year had followed on from a strong performance in December with the industry growing by $1.7 billion over the last two months.
"This is a great start to year and we believe the Australian ETF market will continue to grow strongly in 2015," Vynokur said.
"In terms of product sectors, exposures to global developed market equities, particularly in the US, recorded the strongest growth in January.
"Interestingly, despite the continued volatility in Europe, products with exposure to European equities also recorded strong growth."
In a record-breaking month for the sector, new money flows accounted for $265 million of the growth in FUM, the review revealed.
While the industry experienced strong growth in January, the average trading valuing decreased by 14 per cent month on month, BetaShares reported.
AUTHOR
Nicholas O'Donoghue
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