ETP sector booms globally
Recent rapid growth in the Australian Exchange Traded Product (ETP) sector has been seen in the global market as well with nearly $24 billion flowing into global ETP during August according to Blackrock.
In its Global Exchange Traded Products Landscape report for August, Blackrock said non US developed market equity and fixed income were the most popular areas of investment while pan European equity exposures accounted for over one third of inflows. However $9.7 billion was redeemed from emerging market ETFs following share market movements in China.
Despite this Blackrock said the ETP industry had still reached record levels with $281 billion worth of inflows for the year-to-date versus $253.3 billion for year-to-date 2014.
In the Australian market international equities were the dominant area for inflows, with European equities standing out alongside global healthcare and global mega cap stocks according to iShares Australia, head, Jon Howie.
Howie said outflows followed the global trend and were away from emerging markets equities and Chinese Large Caps as well as US large caps, but was partly offset by inflows into US small caps.
AUTHOR
Jason Spits
Recommended for you
Evidentia’s chief investment strategist Nathan Lim has announced his retirement after a 30-year career.
GQG Partners has marked its fifth consecutive month of outflows as its AI concerns lead to fund underperformance but overall funds under management increased to US$166.1 billion.
Apostle Funds Management is actively pursuing further partnerships in Asia and Europe but finding a suitable manager is a “needle in a haystack”.
Managed account provider Trellia Wealth Partners, formed from the merger between Betashares and InvestSense, has appointed its first managing partner.
