In her 2015 forecast, SSgA head of ETFs for Australia, Amanda Skelly, said the next 12 months will see a wave of product innovation in the ETF space.
“The ETF industry is one that is constantly innovating,” Ms Skelly said. “After a year of high asset growth in the Australian ETF industry, we anticipate an increase in the number of new, innovative ETFs.”
“New developments will likely be in the areas of advanced beta and international markets, as product issuers seek to meet increased investor interest in these growing areas,” she said.
“While much of the innovation in other markets has been in the areas of bonds and active management, we are unlikely to see material developments in these areas due to subdued investor interest,” Ms Skelly said.
SSgA also said it anticipates investors across the board will increase their usage of ETFs during the year, with financial planners being the biggest adopters.
“The continued addition of ETFs to approved product lists and further developments in due diligence processes and accreditation programs will be important enablers for continued growth,” Ms Skelly said.
“Regardless of investor type, there is a growing appreciation of how to combine ETFs with other types of investing, such as direct shares and managed funds, to help deliver more relevant investment outcomes for investors,” she said.
