Fixed income ETP’s appeal declines

ETPs/VanEck/fixed-income/australian-equities/international-equities/

23 July 2020
| By Laura Dew |
image
image image
expand image

The market share of fixed income exchange traded products (ETPs) declined from 30% in 2019 to just 3% in the first half of 2020 as investors favoured Australian equities instead. 

Data from VanEck for the first half of 2020 to 30 June found there had been a “complete overhaul” of favoured asset classes this year.  

With record outflows from February to June 2020, fixed income ETFs dropped from 30% of market share to 3%. 

On the other hand, Australian equity ETPs’ market share increased from 24% to 44% and the sector saw 1.5 times the flows of the international equities. The market share of international equities declined slightly from 32% to 25%.  

Market share of ETPs  

Australian equities saw inflows of $3.6 billion during the six months compared to inflows of $2 million for international ones. Meanwhile, Australian fixed income only saw inflows of $202 million and international fixed income was even smaller at just $73 million.  

However, overall inflows were $8.2 billion, which Van Eck said, was an increase of 300% compared to the same period in 2018 and nine product launches took place during the period.  

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months 2 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 2 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 3 weeks ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

1 week 3 days ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

3 weeks 4 days ago

ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay....

2 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5