Domestic ETF assets grew 28% over 11 years: Limaye

By: | Published: December 4, 2018 2:19 AM

Limaye said despite ETFs being in existence for a long time, the assets linked to equity, debt and commodity ETFs aggregate to around Rs 94,100 crore, with equity ETFs alone having a share of close to 93% in the domestic ETF market, which is just 4% of mutual fund AUM.

The global ETF AUM stands at .9 trillion, wherein the US dominates the industry with 71% market share followed by Europe at 16% and Asia Pacific at 10%, Limaye added.

Despite a relatively slow start, assets under management (AUM) of domestic exchange-traded funds (ETF) of both equity & debt grew at a rate of 28% CAGR over the last 11 years, whereas the number of ETFs have increased 10-fold from 6 in 2007 to 60 in October 2018, NSE managing director and CEO Vikram Limaye on Monday.

Limaye said despite ETFs being in existence for a long time, the assets linked to equity, debt and commodity ETFs aggregate to around Rs 94,100 crore, with equity ETFs alone having a share of close to 93% in the domestic ETF market, which is just 4% of mutual fund AUM.
The global ETF AUM stands at $4.9 trillion, wherein the US dominates the industry with 71% market share followed by Europe at 16% and Asia Pacific at 10%, Limaye added.

In the recent years, the government has also continued to monetise their holdings in public sector enterprises to raise debt in a more cost-effective manner, he added.
“To encourage direct retail participation, products like ETFs need to be encouraged. ETFs embody many characteristics that investors and regulators find desirable. They track the performance of well-known indices,” he said.

Department of investment and public asset management secretary Atanu Chakraborty, who was the chief guest at the event, appreciated NSE’s efforts in creating awareness about ETFs.

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