2016 will be remembered as the year of unthinkables. From the historic breakups of Britain and the EU and Brad and Angelina, to the surprise victories of the Cronulla Sharks and Donald Trump.
Dismal as it may seem, there is still something to celebrate in the local exchange traded products (ETP) market. Attached is SSGA’s After a Year of Unthinkables report outlining where the opportunities for ETP investors lie in 2017. Head of SPDR ETFs Australia, Shaun Parkin is available for interview this week to discuss this report in further detail.
This year, the Australian ETP industry reached over $24.5 billion in assets under management.[1] ETPs – which encompass exchange traded funds (ETFs), continue to provide Australian investors with access to domestic and international asset exposure while being transparent, easy to trade and generally having lower management fees than actively managed funds.
With the rollercoaster ride of 2016 nearly over, SPDR ETFs has cast its eyes ahead to see what potential events and trends stand to influence opportunities in the ETP market. These include:
· Australian Financials: Interest rate tightening in Australia will likely be positive for bank earnings and is also likely to provide a boost to Australian insurers and diversified financials
· Australian Resources: Trump’s US infrastructure plans are likely to throw a lifeline to commodity-related businesses worldwide, including the deflated Australian commodity industry
· International equities: Investors are expected to shift from a strong focus on yield stocks to the underappreciated and underpriced growth areas of the market
