Exchange-traded funds (ETFs) with exposure to equity are expected to accelerate in new year, with the US and recovering Europe both earmarked as markets to watch, a snapshot shows.
The end of last year saw global ETF assets under management sitting at US$2.4 trillion — up from $1.9 billion in December 2012, according to the State Street Global Advisors (SSgA) December ETF report.
Total Australian cash inflows sat at a record $2.48 billion, the snapshot showed, and the positive momentum looks set to continue into the new year.
Commenting on what to expect in 2014, SSgA head of SPDR ETFs in Australia, Amanda Skelly, said global recovery should be "broad-based" in the new year.
She said the US should pick up pace, while Europe should see "moderate" growth as it continues its recovery.
"With this backdrop, there are plenty of ETF investment opportunities to catch the Australian ETF investor's eye," she added.
Skelly said investors would be wise to target cyclical sectors, as opposed to defensives, and said equity markets are still an attractive avenue, especially for fixed income.
