Aussie ETP market sees record January

The Australian exchange traded product (ETP) market saw record net inflows of $574.4 million in January, which made it its highest intake on record for the first month of the year, according to VanEck.

The ETP industry grew 16 per cent to $42.1 billion compared to the corresponding period last year, with exchange traded funds (ETFs) accounting for 90 per cent of the total assets under management (AUM).

International equity ETPs attracted the greatest flows in January, 2019, with $269.5 million in net flows, compared to $163.5 million for Australian equities.

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Following that, AUM for international equity ETPs accounted for 44 per cent of the ETP market, compared to 37 per cent for Australian equities.

Over the 12 months to 31 January, net flows of $3.1 billion went to international equity ETPs, overtaking the $1.7 billion flowing to Australian equity ETPs.

The firm noted that the lower Australian dollar in 2018 also helped to boost returns from offshore ETPs.

VanEck said it saw investors continue to diversify their portfolios into offshore asset classes, primarily developed market ETPs, which managed to attract $223 million of flows in January.

By strategy, smart beta ETFs were growing in popularity for both equities and fixed income asset allocations, with monthly net flows of $149 million.

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