Exchange-Traded-Fund (ETF) growth in the Asia-Pacific region is set to continue at a rapid pace on the back of inflows and new issuers entering the market.
This is according to a new report from State Street, which expects ETFs in Apac to grow 30% in 2025.
Last year, the region saw ETF assets grow 47%, significantly higher than the global growth rate of 28%.
State Street described the growth as “explosive” and “astounding” since 45% of the growth came from inflows and only 2% came from market appreciation.
The firm said the growth was broad and wide across all asset classes (equity, fixed income, commodity, cryptocurrency) and strategies (active, passive, smart beta, leveraged/inverse).
Ahmed Ibrahim, head of ETF solutions, Apac at State Street, said: “Within Asia-Pacific, the China ETF market experienced the most significant growth of 75% year-on-year in…