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.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.