State Street Global Advisors’ (SSgA) range of SPDR exchange-traded funds (ETFs) in Australia has reached $3 billion in funds under management (FUM).
The growth reflects a 52 per cent jump in FUM for SPDRs over the last 12 months to 31 July 2010, indicating a growing demand during the past year from investors, particularly in the retail sector.
SSgA senior managing director in Australia Rob Goodlad said retail investors accounted for approximately 70 per cent of the total holders of ETFs, either through direct holdings or through major investment platforms.
Goodlad said the latest milestone validates a trend where both retail and institutional investors are using the real-time liquidity that these strategies permit via the Australian Securities Exchange (ASX).
“Investors are taking a post-modern approach to their investment portfolios by increasingly incorporating ETFs as a diversified, low-cost, fully-administered option that can be used as a single investment solution or as part of a core and satellite approach,” he said.
“In particular, the SPDR S&P/ASX 200 ETF has become more of a mainstream investment due to its high liquidity, flexibility and transparency providing investors with diversified index exposure to Australia’s most popular benchmark – which also receives dividends and franking credits.”
SSgA’s suite of ETFs accounts for about 80 per cent of total FUM of all ETFs in the market, according to ASX data.
Total FUM for all ETFs listed on the ASX at 31 July was $3.74 billion, compared with $2.2 billion in July 2009.
