The BetaShares Australian ETF Review for May 2014 said around 70 per cent of the $354 million in growth was from new money flows rather than an increase in asset prices indicating investors are continuing to add ETPs to their investment portfolios.
The review indicated the top performing products were the iShares FTSE/Xinhua China 25 with a return of 5.7 per cent, the iShares MSCI Emerging Markets at 4.1 per cent and the iShares S&P Asia 50 at 4.0 per cent.
In terms of market cap, the SPDR ASX 200 Fund has the largest share with $2.3 billion, followed by the iShares S&P 500 with $1.1 billion and the iShares S&P Global 100 with $646.9 million.
BetaShares managing director Alex Vynokur said the inflows for ETPs in the past four months has exceeded the total amount of new money raised by the industry during the 2012 calendar year.
“The increased level and consistency of inflows during recent months reinforces the notion that ETPs have become an increasingly mainstream vehicle to implement investment decisions,” said Mr Vynokur.
Despite this, he said product momentum has begun to slow recently, indicating a maturing market with all core asset classes now available on the ASX.
“However, we still believe there are product gaps to fill for Australian investors when compared with more developed international markets and believe this slower product growth is only temporary,” he said.
