Smart or strategic exchange-traded products (ETPs) domiciled in the Asia Pacific experienced a reversal of fortunes in 2022, according to data from Morningstar.
Following two years of fund closures and outflows, the organic growth rate for Apac ETPs was 18%, while market share grew from 5% to 5.4%.
The growth has not been universal across the region. In recent years, Japan has led the ETF market thanks to the central bank’s ETF buying programme, however, this has since stalled.
Instead, the growth has been led by Australia and Taiwan, said Jackie Choy, director of ETF research at Morningstar Asia.
Taiwan especially stood out in terms of strategic beta ETPs, with growth doubling in 2022, driven mainly by the inflows into existing dividend ETPs and also into the seven new ETP launches.
The Morningstar data tallies with the findings from asset servicer Brown Brothers Harriman’s Annual Greater China ETF Investor survey, which found that 75% of investors in Greater China expect to increase their use of ETFs this year.
©2023 funds global asia 
At times like these, HSBC Asset Management easily pivots towards emerging markets.
The spotlight on growth markets and the need to be nimble and dynamic is ever-sharper, given the difficulty in predicting monetary policy in the world’s major nations.
A comprehensive, cost-effective, and transparent currency overlay hedging solution is crucial to mitigate FX exposure risks in the complex landscapes of Japan and China's FX markets, explains Hans Jacob Feder, PhD, global head of FX services at MUFG Investor Services.
Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.
Shareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement, says Tetsuro Takase at SuMi Trust.
Robert St Clair, head of investment strategy at Fullerton Fund Management, explores the reasons investors should be paying attention to the rising demand for healthcare in China.
China's internet market presents one of the most compelling long-term growth potentials for investors today, given the catalysts supporting the sector from both macro and fundamental perspectives, explains Dr Xiaolin Chen, head of international, KraneShares.
