Strong start to 2019 for ETFs
The Australian exchange-traded fund (ETF) industry continues to grow strongly, with Q1 2019 cash flows reaching $1,864 million and returns bouncing back from December lows, according to the figures from the Australian Securities Exchange (ASX).
While international equity ETFs continued to receive the strongest cash flows, ETF investors had also focused on fixed income ETFs.
International equity ETFs received 37.4 per cent of total cash inflows, while fixed income ETFs recorded 27.5 per cent of flows during the quarter.
Damien Sherman, Vanguard’s head of ETF capital markets, said they saw renewed optimism from investors this quarter following disappointing returns at the end of 2018.
“Vanguard continues to see strong flows, particularly into its broad-based index ETFs which represent a low cost solution for investors looking to add instant diversification to their portfolios", Sherman said.
“And this quarter we recorded our strongest start to a year ever with $624 million in inflows.”
“With the addition more recently of our active ETF offerings, we are seeking to provide additional choice for investors while maintaining our promise of quality, diversified ETFs offered at competitive prices that let investors keep more of the returns they earn.”
AUTHOR
Chris Dastoor
Recommended for you
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
