Australian ETF market close to $50 billion

10 May 2019

The Australian exchange traded funds (ETF) market has hit $47.65 billion at the end of April, according to the figures from the Australian Securities Exchange (ASX).

This translated into a 4.1 per cent increase over the month and a gain of 26.7 per cent over the year, and was driven by fact that Australian investors recognised ETFs as useful investment vehicles, ETF Securities said.

The firm expected this trend to continue and “comfortably past $100 billion by the end of 2022”.

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“The speed of the current increase indicates that ETF growth has already entered another high growth stage after consolidating in Q4 2018,” ETF Securities’ chief executive, Chris Walesby, noted.

“And we can expect that to continue for the foreseeable future.”

“As well as general market conditions, this also reflects the entry of new users into the market combined with additional products, which creates larger pools of funds under management.”

According to ETF Securities, alongside the growth in market capitalisation there was also a corresponding increase in trading volumes as the ASX figures showed the average monthly value of ETFs traded in the year to April jump 7.7 per cent from the preceding year to $3.1 billion.

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