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Global ETP industry reaches $2 trillion in AUM

Rachael Micallef  |  30 Jan 2013Text size  Decrease  Increase  |  

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Rachael Micallef is a journalist with InvestorDaily, a Sterling publication.


The global exchange-traded product (ETP) industry has surpassed a record figure of US$2 trillion in assets under management (AUM) as the industry continues to boom, according to research from BlackRock's iShares business.

The ETP industry reached the new milestone this month, surpassing previous record-breaking inflows in 2012 that saw it grow by 27 per cent compared with the end of 2011.

Australian-listed ETPs have also seen a boost, growing by 30 per cent in 2012 to reach more than $700 million of new asset inflows.

"ETPs make investing easier and as Australian cash rates have come down, investors have increasingly taken advantage of the choice of low-cost, flexible investment options available to them on the ASX [Australian Securities Exchange]," iShares head of Australia, Mark Oliver, told InvestorDaily.

"Exchange-traded funds (ETFs) offer a transparent, fair and effective way of investing that empowers individuals to invest as and when they choose."

More than half of the Australian-listed ETP inflows went into the iShares range of international and Australian equity ETFs.

Oliver said the popularity of ETPs as a portfolio strategy for domestic investors looking to weather market volatility is likely to be just as evident during the next year.

"There is increasing recognition that ETFs are effective tools for investors who want to access new opportunities, or where they want to efficiently navigate changing market sentiment," Oliver said.

"Australian ETP growth has averaged almost 30 per cent per year since 2001 and we expect that this rate will continue as investors embrace the product category and the range of investing options increases."