Established players maintain share of ETF market
Australia's leading exchange traded fund (ETF) providers are continuing to see their funds under management (FUM) grow, research reveals.
Data released by automated investment adviser and fund manager Stockspot, showed that the top three Australian ETF providers hold 79 per cent of FUM in the market, but noted that new entrants have made their mark.
While market leader, iShares remained the dominant ETF provider, holding more than a third of all FUM in the sector, the launch of ETFs by Magellan, ANZ and K2, has seen the trio take a combined 2.5 per cent of FUM in the market, after a record-breaking year for inflows for the industry.
Of the 10 ETF providers who were operating in 2014, just two - ETF Securities and Aurora - saw their FUM fall in 2015, with Aurora now holding the least amount of funds, $16 million, behind ANZ who hold $17 million in FUM.
Vanguard reported the largest dollar increase in FUM ($1,942 million) over the year to December 2015, up 69 per cent, followed by iShares ($1,732 million) and SPDR ($1,064 million), with Market Vectors reporting the highest percentage change in FUM, jumping 269 per cent to $281 million over the course of 12 months.
UBS also saw triple-digit percentage growth in FUM, increasing its holdings from $63 million to $181 million, a rise of 189 per cent.
AUTHOR
Nicholas O'Donoghue
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