ETFs continue to grow: BetaShares
February saw the local exchange-traded fund (ETF) industry continue to grow, according to the BetaShares Australian ETF Review for February 2012.
The growth was modest, with approximately $9 million of new money and the overall market cap increasing $91m to $5.2 billion. However, a notable trend among investors was increased flows into Australian equities and yield-based ETFs.
Looking forward to March, BetaShares' review predicted that the introduction of fixed income products would likely lead to approximately 75 ETFs listed on the Australian Securities Exchange by mid-2012 compared with 60 at the end of February.
Commenting on the trends the review had revealed, Drew Corbett, head of investment strategy for BetaShares, said that March would be remembered as a milestone month for the local ETF industry with the launch of the first cash and fixed interest ETFs.
"With investors increasingly focussed on yield, BetaShares is predicting strong inflows during March and the rest of 2012, with investors now having access to income-focussed cash and bond products," he said.
"As a result of Australian ETF providers looking to add fixed interest and income-based offerings, we expect awareness of ETFs to increase.
"This is another positive step forward for the industry."
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