ETFs hit $10 billion milestone

ASX Group has announced that exchange-traded products (ETPs) have achieved the milestone of $10 billion in funds under management.

ETPs have experienced strong growth, doubling funds under management from $4.9 billion in December 2011 to $10 billion today.

This growth is attributed to an increased awareness of the product group by both retail and institutional investors and an expanded product offering such as international exchange-traded funds which have performed strongly.

Growth in equity market activity and the recent fall in the Australian dollar have also had a positive effect on ETPs that provide international exposure.

ASX business development manager Jonathan Morgan said: “ASX is committed to providing an extensive range of investment options for Australians.  The strong growth in ETPs demonstrates that investors are increasingly looking for investment opportunities that enable them to diversify their portfolios.  In reaching this milestone, we congratulate our issuers who have created an increasingly diverse range of products across a broad spectrum of sectors and investment styles.”