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Asia Pacific ETF growth soars

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From the US$30.9 billion invested in the global ETF industry during February, US$8.1 billion was invested into ETFs based in the APAC region, according to State Street Global Advisers.

This was more than double the amount invested into ETFs based in the US.

Head of SPDR ETFs Amanda Skelly said the increasing number of ETFs available throughout the region provides investors with “more efficient ways of accessing international companies and markets”. 

“Locally, investors now have 27 ETFs on international markets to choose from, giving them the ability to control how and where they invest in global markets, in a cost-controlled manner,” said Ms Skelly. 

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The research indicated that while overseas-based ETFs and dividend-focused ETFs continued to see strong inflows from Australian ETF investors, broad-based Australian equity ETFs experienced the highest cash flows from Australian ETF investors with just under 40c of every dollar invested in this category. 

“Australian equity ETF investors were rewarded for the month of February with the ASX 200 returning close to five per cent,” said Ms Skelly. 

“Investors in Australian REITs and Europe also experienced strong performance during the month, with these markets delivering returns above four per cent,” she said. 

The global ETF industry now stands at $2.4 trillion.