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$10 billion milestone for exchange-traded products

The Australian Securities Exchange has announced that the exchange-traded products (ETP) market has now passed the $10 billion mark, doubling in the past two years.

An ASX statement indicated that funds under management (FUM) comprising ETPs have doubled in the past two years, from $4.9 billion in December 2011 to $10 billion today.

The ASX believes this could be the result of increased awareness among both retail and institutional investors and an expanded product offering including international exchange-traded funds (ETFs) which have performed strongly.

Equity market growth and the falling Australian dollar have also had a positive effect on ETPs providing international exposure.

According to the December ASX report Spotlight on ETPs, Australian broad-based ETPs represent the largest share of FUM at 36.8 per cent, followed by broad-based international ETPs at 31.8 per cent.

Australian broad-based ETPs experienced fund inflows of $96.03 million and broad-based international ETPs had fund inflows of $80.8 million.

The issuer with the largest FUM was iShares with $3.61 billion, followed by StateStreet at $3.27 billion and then Vanguard at $1.4997 billion.


ASX business development manager Jonathan Morgan said the ASX is committed to providing an extensive range of investment options for Australians.