Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

ETFs funds and products steam ahead

ETFs/funds-management/

9 June 2015
| By Jason |
image
image image
expand image

Exchange traded funds (ETFS) have continued their unbroken growth trajectory recording 16 months of growth with an increase in funds under management of $900 million for the month of May, leading to a record funds under management (FUM) of $18.6 billion.

The continued growth was spurred on by the launch of 20 new products from two providers and solid market growth of underlying investments with accounted for 60 per cent of the increase in FUM. The remaining 40 per cent came from new inflows of funds, mainly into broad Australian equities and developed international equities products.

New exchange traded products (ETP) launched into the Australian market have also hit a record level with 29 products released since the start of the year. Of those 20 were released in May alone, 17 of them following the launch of the Australian Corporate Bond Company — which will issue single Australian corporate bond ETPs, and one each from BetaShares, Market Vectors and UBS. ANZ has flagged that it will also launch six new ETPs in the coming weeks.

The new product launches are more than double the total number for 2014 in which only 12 ETPs were released to the market with the total number of ETPs currently available on the ASX standing at 129.

BetaShares managing director, Alex Vynokur, said the increase in product reflected strong investor demand as well as greater opportunities in the market for ETP providers and the ETF market was on track to exceed expected growth levels by year end.

"With a multitude of new products launched and a lot more expected in the latter half of the year, we believe the market may exceed our initial expectation of $23 billion in FUM by the end of 2015," Vynokur said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

2 weeks 6 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

3 weeks 6 days ago

So we are now underwriting criminal scams?...

7 months ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

3 weeks 1 day ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

3 weeks 4 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

6 days 22 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND