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
State Street has rebranded its State Street Global Advisors arm, which has US$4.6 trillion in assets under management, following a series of deals with financial services firms in recent months.
Northern Trust Asset Management has appointed a new head of international and responsible investing.
More than 20 winners have been revealed for the annual Fund Manager of the Year Awards.
Regal Partners has announced its latest alternatives acquisition, taking a 50 per cent stake in real estate and advisory platform Ark Capital Partners ahead of a future hotel strategy launch.
