ETF growth slows in first half of year

In its half-yearly sector review, BetaShares stated that the Australian ETF industry presently holds assets of $22.5 billion, roughly $0.7 billion below the yearly high recorded in May.

Growth in the last six months has been slower than the six months prior, with growth for the last 12 months sitting at 21.8 per cent and market capitalisation growing $4 billion.

“The first half of 2016 was a much slower month for the industry than the six months before that, and as a result, over the last 12 months (as opposed to the last 6 months), the industry’s growth has been a much stronger 21.8 per cent,” BetaShares said.

The company noted that much of the growth was structural growth, as asset price declines were “actually being a net negative on the industry as a whole”.

“In our year-end 2015 report, we forecast the industry to be $28-$30 billion by December 2016, based on half-year performance to date, and possibility of range bound equity markets, we would expect the end result to be at the lower end of the spectrum, and more likely closer to $26 billion,” BetaShares said.

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ETF growth slows in first half of year

Killian Plastow

Last Updated: 15 July 2016 Published: 18 July 2016