The exchange traded fund (ETF) sector brought in more money in the first half of this year than it did throughout 2012, according to the latest figures released by BetaShares.
The BetaShares Australian ETF Review for the Half Year 2013 found inflows into ETFs for the half year were $970 million, already eclipsing the total net inflows for 2012 of $850 million.
The sector had continued its positive trajectory, with market capitalisation growing 20 per cent. Total industry funds under management reached a fresh record high of $7.63 billion.
The fast growth was generated notwithstanding limited product development, with only one new product being launched in this period, resulting in a total of 80 exchange traded products on the Australian Securities Exchange (ASX).
Managing director of BetaShares, Alex Vynokur, said gold exchange traded products saw the largest outflows this year to date, as investors have been reducing their gold investments in light of the price declines over the last six months.
“The ETF industry is fast becoming a barometer for investor sentiment towards asset classes, including gold, which was part of a major global sell off earlier in the year,” Vynokur said.
“The Australian ETF industry continues to mature and experienced the first ETF closures on the ASX this last month, with Market Vectors Australia removing all six of their existing products from quotation,” he added.
“Overall, however, we are beginning to see real traction with investors and advisers who are utilising the key benefits of ETFs, being low cost, transparency and liquidity.
“Based on this, we predict increased new product activity during the second half of the year and for the market to end at some $9 billion in assets under management by the end of the year.”
