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NEWSLETTER

ETFs advance

World domination seems certain for ETFs as this week’s features bring you Bloomberg Intelligence’s Eric Balchunas’s predictions for ETF growth in the US over the coming year. ETFs will likely see an uptick of trillions in assets to their already strong flows over the next decade as more roads open up for legacy mutual funds to bring over their strategies and clients in a way that fits their needs, he says.

“This year, active ETFs have accounted for 71 per cent of the nearly 400 ETFs launched – another record and up from 20 per cent five years ago,” Balchunas says. “The issuers tend to be big, combining for trillions of dollars in legacy mutual fund assets. Index-based ETFs are still taking in nearly 80 per cent of net flows, though for years that number topped 95 per cent. We think it will continue to go down as more issuers launch active products and the fees keep dropping.”

More growth news came from a bit further afield for those of us based in the UK, with Australia’s Computershare publishing its 2023 ETFs Insights Report which reveals the number of retail investors in Australian ETF registers that the company administers has grown by 230 per cent since 2020.

The report shows that half (50.5 per cent) of ETF investors that the company oversees own only one ETF, with almost a quarter (23.7 per cent) owning just two.

The publication’s data also show that almost half 47.7 per cent of Australian ETF investors registered with Computershare have a portfolio of AUD10,000 or less, with 61.1 per cent of retail investors boasting portfolios of this size.

Ibrahim Hussein, Head of ETFs at Computershare Australia and New Zealand, said: “It’s clear that Australian investors are continuing their love affair with ETFs, with many factors driving the product’s continuing popularity, including easy-access trading platforms, lower fees and investors becoming more likely to move their disposable income into the share market since the start of the pandemic.”

Beverly Chandler, Managing Editor

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A new report published by global financial services company Computershare has revealed key trends in the Australian ETF market during the past year.
ETFs will likely see an uptick of trillions in assets to their already strong flows over the next decade as more roads open up for legacy mutual funds to bring over their strategies and clients in a way that fits their needs, according to Bloomberg Intelligence’s new 2024 US ETF Outlook report. 

Global ETF Launches

Global Launches sponsored by STOXX
In line with the report from Computershare this week which revealed the Aussie love of all things ETF, our non-North American launch this week is from Australian ETF issuer, Betashares, working with Europe’s Solactive.

US ETF Launches

US Launches sponsored by STOXX
There were 10 new ETF offerings launched for the week, each with a distinct value proposition for investors.  Detailed below are the respective launches from each asset manager.

Canada ETF LAUNCHES

Canada Launches sponsored by STOXX
A summary of the Canadian ETF launches that occurred in November 2023.
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