John Swolfs, the CEO of Inside ETFs joined us for our most recent Listed Learnings webinar.

Inside ETFs is the world’s leading ETFs conference, with events held in various locations around the world. Managing this platform places John at the forefront of the ETFs universe, allowing him to gain unique insights into the themes and trends shaping the industry.

Since the global financial crisis, ETF in-flows in the US stand at around US$2.6 trillion.

John points out this means over the past 11 years, US$38,000 per second has flown into ETFs for every day the US trading markets have been open.

“This isn’t just isolated to the US… European ETFs in 2019 brought in 100 billion euros and that market is now up over 870 billion euros, up about 40% since 2018… In 2019, National Bank of Canada said ETF assets grew up to the 200 billion milestone there,” John told us during the webinar.

They are extraordinary figures which could give us an insight into the future of the ETF industry here in the Australian market – a market differentiated from most European and Asian markets because we have a single regulator, putting ETFs on a level playing field.

While so far in 2020, the Australian ETF market has contracted due to volatility surrounding the Covid-19 outbreak, in 2019, our ETF market grew by roughly 50% and John believes the Australian market will keep growing rapidly as issuers continue to cohesively educate investors about the benefits of ETFs.

Also during the webinar, John outlined these 3 key themes in which he witnessed at the recent Inside ETFs Florida conference (held in January 2020):

  • The ETF market is evolving, with more managers focusing on developing specialised ETFs focussing on niche thematics.
  • Active-ETFs (an Aussie invention) are coming to the US. Multiple active-ETFs have now been approved by regulators.
  • Fixed-income ETFs are on the rise, with US$135 billion flowing into these products in the US in 2019.

To find out more about our Pinnacle aShares active-ETFs, click here.

We encourage you to listen to the recording of the webinar, embedded below.

Author Chris Meyer

Chris Meyer is Director of Listed Products at Pinnacle Investment Management.

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