The market share of fixed income exchange traded products (ETPs) declined from 30% in 2019 to just 3% in the first half of 2020 as investors favoured Australian equities instead.
Data from VanEck for the first half of 2020 to 30 June found there had been a “complete overhaul” of favoured asset classes this year.
With record outflows from February to June 2020, fixed income ETFs dropped from 30% of market share to 3%.
On the other hand, Australian equity ETPs’ market share increased from 24% to 44% and the sector saw 1.5 times the flows of the international equities. The market share of international equities declined slightly from 32% to 25%.
Market share of ETPs