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
Recommended for you
Despite ASIC concerns about private credit funds being accessed via the advised channel, there are questions regarding how high its usage actually is among financial advisers.
Challenger has looked to the superannuation industry for its appointment of a group chief investment officer, a newly-created role.
Perpetual has confirmed it has entered into an exclusivity agreement with a US private equity firm to progress discussions regarding the sale of its wealth management division.
Paradice Investment Management has become the latest fund manager to launch an active ETF version of its managed fund, placing greater emphasis on retail distribution.
