iShares reaches $50bn in Aussie ETF AUM

Having launched its first active ETF in Australia earlier this year, iShares says this has helped the firm reach $50 billion in assets under management (AUM).

The milestone comes as the ETF provider, which is owned by BlackRock, reached US$5 trillion in AUM globally. 

It noted ETF innovation was leading the way with the development of new types of products focused on fixed income, active products and digital strategies. Currently, it is managing more than US$100 billion in digital asset ETPs, US$1 trillion in fixed income ones, and US$78 billion in active ETFs.

In Australia, the iShares US Factor Rotation Active ETF (IACT) listed on the ASX in June, complementing its range of more than 50 passive ETFs. 

Earlier this year, the provider said its ETFs had seen a record first half for inflows, gaining US$192 billion in six months compared to US$150 billion a year ago. Some US$87 billion went into equity ones and US$77 billion went into fixed income ETFs.

Steve Ead, head of global product solutions for Australia and New Zealand at BlackRock, said: “Crossing A$50 billion in iShares assets in Australia marks a key milestone and underscores the confidence Australian advisers and investors place in ETFs as core building blocks for portfolios.

“Nearly two decades ago, iShares pioneered access to global equities on the local exchange – an innovation that continues to shape the way Australians invest. Today, we’re focused on democratising access to a broad range of asset classes, sectors, and country-specific exposures in a cost-effective way. We’re proud to bring the scale of iShares to help Australians achieve their financial goals.”

Looking ahead at the global ETF landscape, it said it expects ETF assets will grow from US$15 trillion  to US$27 trillion in the next five years.

Fixed income ETFs in particular have been flagged as an area of growth for the wider ETF industry, with providers such as Macquarie PIMCO, Perpetual, Schroders, and VanEck all launching fixed income products since the start of the year. 

Speaking with Money Management in May, JP Morgan Asset Management’s (JPMAM) global head of ETFs, Travis Spence, suggested he saw the boom in fixed income ETFs coming, particularly in the active space.

“One of the areas we are seeing particular interest from institutional investors is in fixed income which is traditionally an active asset class that can be difficult to access. They don’t always trade on a daily basis, so ETFs offered via the secondary market offer an extra layer of liquidity and that’s an additional benefit. That will be an area of growth going forward.”