iShares grows ETF market share but State Street still leads
Exchange Trade Fund (ETF) provider iShares has posted annual growth of 64 per cent to hold more than a quarter of the market, but still trails State Street Global Advisers which holds 40 per cent of the market.
However State Street's annual growth was much lower than iShares, at 8.6 per cent, and its market share has fallen from 57.4 per cent in 2011 to 40.8 per cent in 2013, according to an analysis of the ETF sector released by Plan for Life.
The analysis also lists Vanguard growing its market share from 5.5 per cent in 2011 to 11.2 per cent in 2013, with a 99.9 per cent annual growth over the past 12 months. Beta shares posted triple-digit growth of 115.5 per cent, growing its market share from 2.2 per cent in 2011 to 5.2 per cent in 2013.
Plan for Life also stated that the ETF market grew to $7.25 billion as at March 31 of this year, and the universe of products in Australia had expanded to 85.
Despite its lower market share, State Street led in terms of funds under management (FUM) with $2.9 billion, followed by iShares with $1.9 billion and Vanguard with $816 million.
The Plan for Life statistics confirm those recently released by BetaShares which stated that half-year inflows into ETFs for the 2013 half year were $970 million, eclipsing the total net inflows for 2012 of $850 million.
However these numbers ran counter to the fortunes of exchange traded products outside Australia which showed outflows for the first time in 18 months, mainly in the United States and emerging markets.
AUTHOR
Staff Writer
Recommended for you
Outflows from an Australian private markets fund manager have caused FUM at Pacific Current to decline by $1 billion in the last quarter.
Former RIAA chief executive Simon O’Connor has joined the ethical advisory panel at U Ethical Investors.
Financial services leaders are “all cashed up with nowhere to grow” when it comes to M&A activity, according to Deloitte, with 90 per cent saying they have strong balance sheets ready for an acquisition.
As fund managers are urged to diversify their product ranges, they are finding a faster way to do this is via an acquisition of existing firms but experts say it is not without potential culture clashes.
