‘Maturing’ ETF market to soar over $300m by | Australian Markets
New commentary from PIMCO has confirmed the Australian exchange traded fund (ETF) market stays on observe to exceed $300 million in belongings beneath management (AUM) by the top of the 12 months, pushed by robust flows in fixed income and worldwide equities themed merchandise.
According to the latest information from securities exchange Cboe from July, fixed income and lively ETFs are recording robust flows and are close to marking all-time highs, as investor urge for food and demand continues to shift and change.
“Active ETFs are carving out a niche in fixed income and infrastructure, supported by a range of fee structures. This highlights the importance of educating the market that ETFs are vehicles for targeted exposures, not simply low‑cost passive funds,” the commentary stated.
“Within active ETFs, global players continue to dominate in size due to structural advantages, while fixed‑income active ETFs have shown inflows even as some equity-active ETFs face pressure.”
PIMCO’s evaluation additionally decided that the ETF market is diversifying, now offering a broad vary of investment choices from rising themes resembling cryptocurrency and alternate options to “traditional” beta exposures and fixed income.
“This diversification points to deeper market sophistication and a broader set of investment choices for clients.”
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