Fixed income ETP’s appeal declines
The market share of fixed income exchange traded products (ETPs) declined from 30% in 2019 to just 3% in the first half of 2020 as investors favoured Australian equities instead.
Data from VanEck for the first half of 2020 to 30 June found there had been a “complete overhaul” of favoured asset classes this year.
With record outflows from February to June 2020, fixed income ETFs dropped from 30% of market share to 3%.
On the other hand, Australian equity ETPs’ market share increased from 24% to 44% and the sector saw 1.5 times the flows of the international equities. The market share of international equities declined slightly from 32% to 25%.
Market share of ETPs
Australian equities saw inflows of $3.6 billion during the six months compared to inflows of $2 million for international ones. Meanwhile, Australian fixed income only saw inflows of $202 million and international fixed income was even smaller at just $73 million.
However, overall inflows were $8.2 billion, which Van Eck said, was an increase of 300% compared to the same period in 2018 and nine product launches took place during the period.
AUTHOR
Laura Dew
Recommended for you
Australian equity ETFs attracted record inflows of $3.2 billion in 1Q25, while heightened volatility led to a decline in flows for global equity ETFs, according to Vanguard.
The failure of a clinical trial by biotech firm Opthea has caused shares in its backer Regal Partners to decline 52 per cent year-to-date and hit its funds under management, quarterly flows show.
GQG Partners has revealed its quarterly flows for the first three months of 2025 were up 5.8 per cent, after a difficult final quarter of 2024 as a result of institutional redemptions.
Global asset manager Janus Henderson has signed a strategic partnership with life insurer Guardian Life, which will commit US$400 million to accelerate the firm’s fixed income development plans.
