Investors attracted to ETFs
The New Zealand Stock Exchange (NZX) last week announced that funds under management in its five Smartshares ETFs had surpassed $500 million, which it said "bucks the trend" of outflows in other parts of the retail funds sector.
In the same week as State Street, which launched the first ETF in Australia five years ago, said New Zealand investors now account for 20% of trades in its streetTracks 200 Listed Property Trust and are "highly active" in other products.
Since listing the first ETF in Australia in 2001, a streetTracks share which mirrors the S&P/ASX 200 index, State Street said the products have received growing support from both institutional and retail investors.
Initially, the Australian streetTracks were used mainly by institutional clients to act like futures, however. Rob Goodlad, head of State Street in Australia, said retail investors are increasingly using the ETFs.
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