With the release of ETF Securities’ ETF Landscape report for the fourth quarter, Kanish Chugh, head of distribution at the ETF solutions provider, said the Australian market had doubled its funds under management over the past three years to more than $73 billion.
This year saw a shift from ETFs being dominated by financial intermediaries, such as advisors, planners and brokers, to more investors looking for easy and profitable access to the market .
“This year has seen a shift with a huge increase in self-use as investors look to take control of their portfolios and pursue new opportunities,” Mr Chugh said.
But the arrival of new platforms offering commission-free ETF trading is expected to shape the behavior of retail investors.
“Even though trading volumes for ETFs have stabilized from March highs, ETF usage is expected to continue to grow, as will the range of investment options available in Australia,” Mr Chugh said .
“The popularity of new ETF-focused trading platforms, such as Superhero or Pearler, makes ETF adoption even easier.”
Concerns over the COVID pandemic saw average daily trading peak by more than double to $772.7 million in March.
The market had 216 products listed at the end of October, with 17 new listings in the last quarter. At the same time, 11 ETFs were delisted.
Technology has been a big focus, with investments in FAANGS or technology sector funds popular with both long- and short-term investors.
“Leveraged exchange-traded products have grown in popularity as investors have sought to take advantage of opportunities presented by more volatile markets this year,” Mr Chugh said.
“Safe haven assets have also been popular, with gold-backed ETFs performing particularly strongly throughout the year.”
