According to the study, the Australian ETF market develops despite Gimmicks.
According to the study, the Australian ETF market develops despite Gimmicks.
Australia's market for stock market -traded funds "is becoming increasingly firmer and diversified", although the large number of available ETFs could mean that, according to a new report by Cerulli Associates, the priority "will now be the consolidation of assets in existing products".
The global research group says in its latest report Cerulli Edge: Asian Monthly Product Trends that 304 ETFs were noted in Australia at the end of September and that new products are launched "even under difficult market conditions".
According to Cerulli, "the diversity of the market in difficult markets has proven to be useful because it is now sufficiently mature to offer much more than pure long-only options".
In other months, certain specialized raw material ETFs showed strong performance, such as a global uranium ETF in August.
According to Cerulli, the dynamics in the Australian ETF industry are "extremely promising, even if you have the feeling that new product launches are so niche that they are just gimmick".
The report notes that ETF providers have launched niche products, even though some products have lost money and others were even taken from the stock exchange.
It refers to the cryptocurrency ETFs that came onto the market with a large fanfare in May, but were taken from the stock exchange due to the low demand of investors.
The local digital asset manager Cosmos Asset Management decorated its three crypto ETFs at the beginning of November, and two ETFs, which in Toronto listed 3iq Coinshares Bitcoin and 3iq Coinshares Ether ETFs, also hired the trade last month.
The report also warns that "with so many products now available, the priority will now be the consolidation of assets in existing products instead of always bringing something new onto the market".
cerulli notes that the Australian ETF market was still strongly dominated by stock strategies.
The research group cites data from Morningstar that show that the assets of stock ETFs "dramatically" from $ 67.2 billion to $ 58.5 billion at the end of September, but these vehicles still managed more money than all other investment classes together.
The entire Australian ETF assets fell from almost $ 87 billion to $ 74.5 billion in late September.
on stocks ETFs accounted for $ 9.7 billion of $ 11.6 billion in net inflows that posted Australian ETFs in the first three quarters of 2022.
cerulli notes that it was “striking that alternative inflows have decreased very strongly, while money market products have become strongly negative - an interesting situation when you consider that rising interest rates offer higher returns on cash than has been the case for many years
"Instead, investors finally seem to return to fixed -interest securities, since the returns increase significantly for the first time in a decade."
The net inflows in fixed-income ETFs reached almost $ 1.6 billion in the first nine months of this year, almost the total annual amount of $ 1.7 billion.
*Ignites Asia is a intelligence service published by FT Specialist for experts who work in the asset management industry. It covers everything, from the introduction of new products to regulations and industry trends. Test versions and subscriptions are available at Ignitesasia.com .
Source: Financial Times
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