ETF growth bolstered by SMSFs in 2015

The adoption of ETFs by SMSF investors helped drive the $US347 billion overall global growth of the ETF industry in 2015, according to BlackRock, despite some of the sluggish performance in markets.

Jon Howie, the head of iShares Australia, said the adoption of ETFs by SMSFs and individuals continued to grow within Australia in 2015.

Mr Howie said this reflected the efficiency of ETFs as “a way to build diversified investment portfolios”.

“This has boosted the liquidity of ETFs on the ASX, which in turn is contributing to greater institutional usage of ETFs in Australia,” he said.

BlackRock global head of iShares Mark Wiedman said that “despite lacklustre equity markets in 2015”, the ETF industry set a new record of growth of $US347 billion, globally.

“Institutional and retail investors are using ETFs more and more, whether as a tool to express a view on almost any financial market or for long-term core investments,” he said.

Bond ETFS in particular saw strong growth, said Mr Wiedmam, with the organic growth rate at 22 per cent.

“Bond ETFs enable retail and institutional investors to access the bond markets at known, transparent prices and with impressive liquidity,” he said.

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