ETF Securities hits $3 billion in funds under management 


Kris Walesby

With the Australian ETF industry touching an all-time high of $67.2 billion in funds under management (FUM) in recent weeks, ETF Securities has announced it has surpassed $3 billion in FUM.

ETF Securities recorded high investment inflows in recent months as investors flocked to invest in liquid, easy and transparent products like ETFs to manage COVID-related volatility.

The firm has seen its FUM double in under two years.

ETFS Physical Gold (ASX: GOLD) has been a standout for the firm, but the firm also benefited from carefully selected index exposures such as ETFS Morningstar Global Technology ETF (ASX: TECH) and recent launches of ETFS FANG+ ETF (ASX: FANG) and new short and leveraged NASDAQ trading products (ASX: LNAS and SNAS).

ETF Securities CEO Kris Walesby says, while pleasing, reaching this milestone has not surprised the team given broader market activity.

“ETF trading for the entire Australian market has more than doubled over the course of the COVID pandemic as investors sought fast and broad exposure to diverse market opportunities. Investors increasingly understand and see ETFs as a core investment tool for their portfolios, with the overall growth of the Australian ETF market and range of products available testament to this,” says Walesby.

“We continue to see strong inflows coming from the professional investment community and the self-advised investors via SMSFs and online trading accounts. There is an increased awareness about the impact of gold in portfolios as it is viewed as a hedge against an equity market sell off and lauded for its lack of correlation to mainstream asset classes.”

ETF Securities Physical Gold ETF is the world’s first pure gold ETF having listed on the ASX in 2003.

Walesby says: “Year to date inflows total $683m into the GOLD ETF (as at 19 August 2020), and total funds under management are now $2.1 billion for this fund. Fundamentally gold and silver are still forecasted to push forward, given the current economic environment.

“The ETFS Physical Silver (ETPMAG) has also witnessed strong demand at the back of strong correlation with gold, recording more than $200 million in FUM this year.

“We are continuously grateful for the strong vote of confidence represented by investor activity in our ETFs. The number of transactions, and volume and value figures, reached all-time highs this year, showing the versatility of these funds which allows investors to do what they want to do,” notes Walesby.

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