iShares reaches $1 billion in AUM

24 February 2011
| By Milana Pokrajac |

BlackRock's exchange-traded fund (ETF) business in Australia, iShares, has reached $1 billion in assets under management amid predictions the market would grow another 20-30 per cent in the next couple of years.

BlackRock's global head of ETF research and implementation strategy, Deborah Fuhr, said one of the main factors driving the growth of the sector was the increasing usage of ETFs by Australian institutions.

She said other factors might include a move to fee-based remuneration models for advisers, as well as platforms' embrace of ETFs.

The head of iShares Australia, Mark Oliver, said the key issue for ETF investors in 2011 was to understand what they owned in terms of product structure and index exposure.

"Not all ETFs are created equal and as more products enter the Australian market, we believe investors should apply close scrutiny before buying an ETF to understand all costs, quality, reliability and, ultimately, the total performance of an ETF over time," Oliver said.

"Questioning whether the ETF has consistent levels of liquidity in all economic conditions will also be paramount," he added.

iShares currently has 23 ETFs listed on the Australian Securities Exchange, across both domestic and international indices.

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

11 months 1 week ago

Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Co...

1 day 21 hours ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

1 day 21 hours ago

In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges....

1 day 22 hours ago