‘Maturing’ ETF market to soar over $300m by year-end

New commentary from PIMCO has confirmed the Australian exchange traded fund (ETF) market remains on track to exceed $300 million in assets under management (AUM) by the end of the year, driven by strong flows in fixed income and international equities themed products.

According to the latest data from securities exchange Cboe from July, fixed income and active ETFs are recording strong flows and are close to marking all-time highs, as investor appetite and demand continues to shift and change.

“Active ETFs are carving out a niche in fixed income and infrastructure, supported by a range of fee structures. This highlights the importance of educating the market that ETFs are vehicles for targeted exposures, not simply low‑cost passive funds,” the commentary said.

“Within active ETFs, global players continue to dominate in size due to structural advantages, while fixed‑income active ETFs have shown inflows even as some equity-active ETFs face pressure.”

PIMCO’s analysis also determined that the ETF market is diversifying, now offering a broad range of investment options from emerging themes such as cryptocurrency and alternatives to “traditional” beta exposures and fixed income.

“This diversification points to deeper market sophistication and a broader set of investment choices for clients.”