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.
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