ETFs outpace retail managed funds on net inflows

ETFs outpace retail managed funds on net inflows

The Australian exchange-traded fund (ETF) industry recorded a 40 per cent increase in net inflows in 2015, eclipsing that of the retail managed funds industry, according to BetaShares.


In a recent report by BetaShares, it was found the ETF industry brought in $6 billion of new money in 2015, up 40 per cent from 2014.

In terms of net inflow growth, ETFs outperformed retail managed funds, which recorded a 6.6 per cent increase in new money, the report said.

BetaShares managing director Alex Vynokur said: “We believe the industry will continue to grow strongly next year, and forecast total industry [funds under management (FUM)] at end 2016 to be in the range of $28 to $30 billion.”

Mr Vynokur said the Australian ETF industry now has $21 billion in FUM, with the global ETF industry sitting at $3 trillion in FUM.

According to Mr Vynokur, investment appetites are also changing, with investors seeking out ETFs in both developed market international equities and Australian equities.

“After several years of appetite for international equities products, in 2015 we saw a more even split between Australian equities and developed market international equities, resulting in $1.7 billion of new money each,” he said.

“Interest in European exposures also grew substantially as investors became more confident in the resolution of the eurozone crisis, with both trading and inflows into European-oriented ETFs increasing markedly compared to previous years.”

The best performing exposures in 2015 were Japanese equities and global consumer staples, followed by global healthcare, Mr Vynokur added.

 

ETFs outpace retail managed funds on net inflows
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