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.
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