In its November ETF review, to be released today, ETF specialist BetaShares has reported 3.2 per cent growth in the market over the month of November, with $210 million of the $297 million growth attributable to new money entering the market.
Global ETFs focusing on equity markets performed particularly well, with $85 million flowing in international equities ETFs in November, while local equities sentiment also rebounded.
“With the US and European markets continuing to show signs of recovery, investors are continuing their bullish stance on international equities and this is being reflected in this month’s ETF flows,” said BetaShares managing director Alex Vynokur.
Meanwhile, rival ETF specialist iShares, a subsidiary of BlackRock Australia, also reported growth in the ETF market, indicating investors and financial advisers view ETFs as an opportunity to gain exposure to international markets.
“Asset allocation is driving the investment landscape for advisers and sophisticated investors,” said an iShares statement. “Rather than debating which Aussie bank to own, the focus is moving towards ‘which countries should I be invested in and in what asset classes’.”
Mr Howie said the ETF boom was facilitating the ability for individual investors and financial planning clients to gain exposure to specific international assets and markets.
“In 2013, we have seen advisers and their clients being far more flexible and sophisticated in the ways they use ETFs,” he said.
“Advisers recognise the many and varied applications of ETFs in client portfolios. One of the most interesting developments of late is investors getting specific about their international allocations. This is supported by the notable increase in trading volumes in some of our single country or region funds.”
