iShares reaches $1 billion in AUM
BlackRock's exchange-traded fund (ETF) business in Australia, iShares, has reached $1 billion in assets under management amid predictions the market would grow another 20-30 per cent in the next couple of years.
BlackRock's global head of ETF research and implementation strategy, Deborah Fuhr, said one of the main factors driving the growth of the sector was the increasing usage of ETFs by Australian institutions.
She said other factors might include a move to fee-based remuneration models for advisers, as well as platforms' embrace of ETFs.
The head of iShares Australia, Mark Oliver, said the key issue for ETF investors in 2011 was to understand what they owned in terms of product structure and index exposure.
"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," Oliver said.
"Questioning whether the ETF has consistent levels of liquidity in all economic conditions will also be paramount," he added.
iShares currently has 23 ETFs listed on the Australian Securities Exchange, across both domestic and international indices.
Recommended for you
Australia’s largest super funds have deepened private markets exposure, scaled internal investment capability, and balanced liquidity as competition and consolidation intensify.
The ATO has revealed nearly $19 billion in lost and unclaimed super, urging over 7 million Australians to reclaim their savings.
The industry super fund has launched a new digital experience designed to make retirement preparation simpler and more personalised for its members.
A hold in the cash rate during the upcoming November monetary policy meeting appears to now be a certainty off the back of skyrocketing inflation during the September quarter.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
