Market Vectors and Van Eck Global managing director for Australia Arian Neiron said the $1.4 billion inflows into international ETPs in Australia “highlights the huge growth in global equity ETPs”.
According to Market Vectors the ETP market has risen 21 per cent from $11.76 billion in June this year up to $14.2 billion in November.
“Investors are attracted to the cost effectiveness, liquidity and transparency that ETFs provide,” said Mr Neiron.
“We expect this trend to continue into 2015 as investors increasingly employ ETFs to diversify and access new ideas and geographies for their portfolios.”
Market Vectors said Australian equities have underperformed compared to their global counterparts with the ASX 200 returning -3.25 per cent while the S&P returned 5.76 per cent.
Mr Neiron said Market Vectors expects investors will continue to leverage the strong growth in global equity markets, particularly the recovery in the US and European economies.
“We expect new ETPs to be launched on the ASX in the first half of next year, further broadening the investment choice for Australian investors,” he says.
