The December 2014 ASX Monthly Funds report showed that total funds under management for ETFs was $15.01 billion as at 31 December 2014.
BlackRock subsidiary iShares is the largest player with one-third of the market ($5.46 billion), followed by State Street ($3.86 billion), Vanguard ($2.81 billion) and BetaShares ($1.59 billion).
Commenting on the statistics, State Street Global Advisors head of SPDR ETFs Amanda Skelly said flows into the sector in December 2014 were the largest on record.
As much as $672 million flowed into Australian ETFs in December 2014, of which just under half ($293 million) went into international broad-based ETFs.
More than one-third of Australian ETFs on offer are international broad-based products.
"Local investors will continue to seek opportunities that tap into the diversification benefits of investing offshore this year, and Tuesday’s fall in the ASX200 put a spotlight on the current volatility in the local market," Ms Skelly said.
"Materials and energy make up a large percentage of our market and with lower commodity prices and the possibility that disappointing growth in China will negatively impact our exports, the reaction comes as no surprise – and investors are therefore seeking opportunities overseas," she said.
As well as ETFs that offer exposure to international markets, investors should also be focusing on hedged international ETFs that manage currency risk, said Ms Skelly.
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