ETFs buck stockmarket trends in ‘watershed year’
Australia's exchange trade fund (ETF) sector recorded a 42 per cent rise in funds under management (FUM), while most other stock markets fell or flatlined, BetaShares reports.
BetaShares managing director, Alex Vynokur, described 2015 as a "watershed year" and forecast that the ETF sector will continue to grow rapidly over the year ahead.
The 2015 annual BetaShares Australian ETF Review, reported that 2015 was a record year of net inflow, trading activity and number of product launches in the sector.
Throughout 2015 FUM increased by $6.4 billion to a high of $21 billion, with 94 per cent of the growth coming from net inflows, while net inflows to retail managed funds was 6.6 per cent.
"Last year was a watershed year for the industry, resulting in the breaking of multiple records," Vynokur said.
"The global ETF industry grew to US$3 trillion in assets under management. In Australia, the industry reached $21 billion in FUM.
"We believe the industry will continue to grow strongly next year, and forecast total industry FUM at end 2016 to be in the range of $28 to $30 billion."
Vynokur noted that property sector funds closed out the year strongly with the Australian ETF market's FUM growing by $388 million in December.
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