Record highs on the cards for ETP market

In a statement, the investment management firm said the “steep growth” of the ETF sector was supporting inflows into the ETP market, with ETP assets reaching $33.22 billion in October 2017, up from $23.95 billion in the same month of the previous year.

Year-to-date flows to 30 October 2017 reached $6,087 million, just shy of the record $6,091 million reached in 2015.

“Investors are using ETPs to access markets offshore and broaden their portfolios, as well as take advantage of smart beta ETFs, which offer targeted investment outcomes and wealth-building strategies,” said VanEck Australia managing director Arian Neiron.

“Based on this sharp trajectory of growth, we expect the ETP industry will grow to between $70 billion-$80 billion within five years.”

VanEck noted that ETFs comprise the majority of Australia’s ETP market.