Industry Updates

ETF Securities Australia hits $1bn

Scott Longley

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ETF Securities Australia has reached the $1 billion assets under management milestone buoyed by the popularity of its thematic beta and gold ETFs.

Founded by Aussie philanthropist Graham Tuckwell, ETF Securities created the world's first commodity ETF, which gave investors direct exposure to gold bars while providing the security of a bank custodian.

ETFS Physical Gold (GOLD) is now worth almost $600 million and continues to attract flows as investors increasingly worry about rising global interest rates and geopolitical risk. GOLD has returned 6% to investors in the past six months.

"It is significant that each year Australian investors become more confident and comfortable each using ETFs to build their portfolios in a simple and low-cost way'' said Kris Walesby, CEO, ETF Securities Australia.

"ETFs are now a core portfolio allocation for many investors and this will only continue as the range of products becomes more diverse and Australian investors recognise the opportunities that exist around the world to benefit from sectors that offer healthy and reliable returns."

Among its product offering, ETF Securities' robotics and artificial intelligence product (ROBO) now has about $80 million under management as investors look to target high growth assets.

ROBO has returned 8.74% in the most recent six months while its TECH product now has about $45 million AUM and has achieved a return of 11.3%.

The shift to passive management has also helped the EURO STOXX 50 ETF (ESTX) reach approximately $70 million AUM (and an annual return of 16.7%) while Australian shares and US high yield ETFs have also enjoyed healthy inflows as investors look for growth and a reliable dividend.

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