iShares grows ETF market share but State Street still leads
Exchange Trade Fund (ETF) provider iShares has posted annual growth of 64 per cent to hold more than a quarter of the market, but still trails State Street Global Advisers which holds 40 per cent of the market.
However State Street's annual growth was much lower than iShares, at 8.6 per cent, and its market share has fallen from 57.4 per cent in 2011 to 40.8 per cent in 2013, according to an analysis of the ETF sector released by Plan for Life.
The analysis also lists Vanguard growing its market share from 5.5 per cent in 2011 to 11.2 per cent in 2013, with a 99.9 per cent annual growth over the past 12 months. Beta shares posted triple-digit growth of 115.5 per cent, growing its market share from 2.2 per cent in 2011 to 5.2 per cent in 2013.
Plan for Life also stated that the ETF market grew to $7.25 billion as at March 31 of this year, and the universe of products in Australia had expanded to 85.
Despite its lower market share, State Street led in terms of funds under management (FUM) with $2.9 billion, followed by iShares with $1.9 billion and Vanguard with $816 million.
The Plan for Life statistics confirm those recently released by BetaShares which stated that half-year inflows into ETFs for the 2013 half year were $970 million, eclipsing the total net inflows for 2012 of $850 million.
However these numbers ran counter to the fortunes of exchange traded products outside Australia which showed outflows for the first time in 18 months, mainly in the United States and emerging markets.
Recommended for you
Platinum Asset Management has entered into binding terms for a merger with L1 Capital with the firm to be renamed upon completion, ending a fund management brand that has existed for over 30 years.
Prime Value Asset Management has launched a retail fund investing in microcap companies, a new version of its existing wholesale offering.
Two active fund managers have outshone rivals to report double-digit share price growth of more than 40 per cent for FY25, but another has lost more than 50 per cent.
From multiple fund launches and personnel changes to major outflows and a scrapped deal, Money Management has collated the most significant news in the funds management industry over the past 12 months.
