The number of Australians investing in ETFs has risen 46 per cent over the 12 months to October 2014, growing from 103,000 the previous year, new research has found
Based on a survey of 10,530 investors and 768 financial planners, Investment Trends research commissioned by BetaShares found the number of investors in ETFs had grown from 103,000 in 2013 to an estimate of 146,000.
BetaShares highlighted that this is the “fastest growth” the industry has experienced in the past four years.
“The ETF industry experienced record growth in 2014, and the increased use of ETFs in investor portfolios, and particularly amongst financial advisers, suggests that ETFs are gaining much wider adoption in Australia,” BetaShares managing director Alex Vynokur said.
“The increased use of ETFs is set to continue with the predicted number of investors to hit 184,000 by the end of the year,” he said.
BetaShares also said of the estimated 146,000 investors, 43 per cent hold ETFs through SMSFs, which illustrates the “continued importance of this investor class in driving industry growth”.
“The key reasons for self-directed investors to use ETFs are diversification and access to overseas markets, highlighting the value investors see in utilising ETFs as an access vehicle,” a statement from BetaShares said.
BetaShares added 2015 is expected to be a strong year for ETF growth, which has already seen funds under management reach a “record high” of $16.8 billion in funds under management in February.
“The Australian ETF market continues to mature and we expect to see ETF usage continue to grow,” Mr Vynokur said.
“Based on the historic growth rate, we predict assets under management to be in the range of $21 billion [to] $23 billion by the end of 2015.”