Fueled by the growing popularity and success of exchange traded fund products in the U.S., investment managers are looking to new markets to expand their product lines.
ETF Consulting principal Tim Bradbury, former iShares co-head, believes foreign ETF issuers will be targeting Australia’s market, reports Victoria Tait for Investor Daily.
“As the market gets bigger and the opportunity becomes realised, there will be more issuers who want to come to town,” Bradbury said in the article. “People who are issuing in other parts of the world who think the Australian market sounds interesting, that it’s well-mandated and well-regulated, might see opportunity here, but they might need someone to help them with a market-entry study, understanding the dynamics, and identifying the benefits and challenges of being here.”
As new products enter the markets, there will be a growing need to educate investors on how ETFs work. [Advisors Need to Brush Up on ETF Education]