Global ETPs see 110% AUM growth
Assets in global exchange traded products (ETPs) have grown by 110% in the past year, according to the Australian Securities Exchange (ASX).
In a report, the ASX said assets in global ETPs rose from $25.8 billion in May 2020 to $54.4 billion at 31 May, 2021, representing growth of 110%.
This compared to growth of 53% for ETPs investing in Australian assets which grew from $19.5 billion to $29.9 billion.
However, the total volume of assets in global ETPs remained low compared to unlisted managed funds (mFunds) where global equities funds made up $359 billion.
Recent global ETP launches on the ASX included VanEck Vectors MSCI International Value ETF, VanEck Vectors MSCI International Small Companies QUAL ETF and VanEck Vectors Global Clean Energy which were all launched in March.
The total market cap of ETPs on the ASX was $109 billion from 221 products.
Growth of ETPs between May 2020 and May 2021
Source: ASX
The reverse was true for mFunds where assets were much larger as Australian equity vehicles grew by 66% and global equity ones grew by 33%.
Between May 2020 and May 2021, assets in Australian equity mFunds rose from $259 billion to $431 billion while those into global equity mFunds saw assets increase from $268 billion to $359 billion.
Kanish Chugh, head of distribution at ETF Securities, said he expected further ETPs to launch as there were “more gaps to be filled” in this space.
“International equity ETPS are receiving greater flows and they offer wider choice than for mFunds. It is not just wider global funds, the category includes UK, Europe, emerging markets funds as well as thematic funds where there has been a big rise in launches,” he said.
“You will still see some launches of ETPs in the Australian space but there are lots of gaps in the global space to be filled.”
AUTHOR
Laura Dew
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
