Exchange-traded funds pass $20 billion mark
Exchange-traded funds (ETF) grew by about 7 per cent in October – the second largest increase on record – to pass the $20 billion mark for the first time.

The popularity of the sector, which provides ultra low-cost, broad exposure to asset classes such as shares and property, has surged in recent years. The sector has posted compound annual growth of 32 per cent a year since July 2004.

There are a broad range of ETFs listed on the Australian Securities Exchange (143 exchange-traded products in total). The most popular ETF categories in October were global equities, Australian high yield, cash, and Australian equities. The largest ETF remains the SPDR S&P/ASX 200 Fund ($2.95 billion) followed by the iShares S&P 500 ($2.08 billion).

Global equity-focused ETFs, such as the iShares S&P 500, have attracted a significant amount of support in recent times as investors diversify away from the Australian sharemarket, which represents just 2 per cent of global markets.

Ignition Wealth uses a range of quality ETFs to build diversified portfolios with exposure to a range of asset classes.

If you want to read more about recent growth in the ETF sector, you can check out Beta Shares here.

Beta Shares is a leading ETF manager trading on the Australian Securities Exchange (ASX). Their range of funds is one of the most diverse in the market, which gives investors access to equities, cash, currencies, commodities and alternative strategies. Their aim is to help Australian investors reach their financial goals by providing them with intelligent solutions.

Beta Shares is a member of Mirae Asset Global Investments Group, one of the largest asset management firms in Asia.