iShares, the world’s leading provider of ETFs, launched its first suite of international ETFs in Australia in October 2007 and now has 23 ETFs listed on the ASX, across domestic and international indices.
According to Deborah Fuhr, BlackRock‘s Global Head of ETF Research and Implementation Strategy, the ETF category in Australia is predicted to grow by 20 - 30% per annum over the next couple of years. Several factors driving this growth include:
• Increasing awareness and familiarity of ETFs (http://au.ishares.com/
• Growth in the number of financial intermediaries and direct investors increasing their usage of ETFs to gain costeffective, transparent exposure to international and Australian sharemarkets;
• Australian institutions increasingly using ETFs for specific investment strategies such as cash equitisation and portfolio rebalancing;
• A move to fee-based advisory models by financial advisers due to proposed regulatory fee reforms, which will make ETFs an increasingly attractive option;
• Fund platforms embracing ETFs driven by rising client demands to include them;
• Greater choice of ETF products with future expansion across asset classes such as fixed income;
• The expectation that new providers of ETFs will emerge;
• Research houses in Australia increasing their analysis and rating services to encompass ETFs;
• A strong Australian dollar will continue to prompt unhedged exposure to global markets.
Mark Oliver, Head of iShares, Australia comments:
“Surpassing $1 billion is an important event for iShares in Australia. A number of factors have led to this milestone achievement including the launch of our Australian Equity ETF products last year, the growing appeal of our international ETFs and the commitment of the iShares team here in Australia.
“We believe a key issue for ETF investors in 2011 is to understand what they own in terms of product structure and index exposure. Knowing what you own is absolutely essential. Not all ETFs are created equal and as more products enter the Australian market, we believe investors should apply close scrutiny before buying an ETF to understand all costs, quality, reliability and ultimately the total performance of an ETF over time. Questioning whether the ETF has consistent levels of liquidity in all economic conditions will also be paramount.
“We will continue to focus on education to help investors navigate the ETF landscape and buy ETFs with confidence. We have seen rapidly growing awareness of the benefits of ETFs, with self-managed super fund (http://au.ishares.com/
“iShares has been proven to be the primary choice by investors when it comes to ETFs. We have a large, dedicated team in Australia and globally to focus on producing the highest quality, most dependable ETF products and a commitment to expanding our product range in the future.”
Further information is available at www.iShares.com.au
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further information is available at www.iShares.com.au
+61 2 8264 1007
0416 366 703
+612 9272 2214