INSUBCONTINENT EXCLUSIVE:
Local exchange-traded funds (ETF) are emerging as an effective counterbalance to similar instruments with an overseas flavour
which changes homes faster than does the weather.
Inflows into local ETF have outgrown overseas-based ETF last year, IIFL data showed
Local ETFs received inflows of $5.7 billion (Rs 40,150 crore) last year, while foreign ETFs invested $1.2 billion (Rs 8,450 crore) in the
ETF inflows accounted for a third of the total domestic inflow in 2019.
Total AUM of domestic ETFs rose 24 times to $23 billion in the past
The largest domestic ETF managers are SBI MF, UTI MF and Nippon Life
Public provident funds are raising their exposure to the equities by ETF route, helping expand the ETF AUM in India.
Cumulative inflows in
and half of the total inflows in the equity funds, according to Amfi data.
The AUM of ETF grew 35.4% between April-December 2019, while
total equity AUM grew 9.59% in the same period
The share of ETFs in total equity AUM rose by 300 basis points to 18.73% since the beginning of the fiscal year
The AUM of foreign ETF is about $45 billion
Vanguard, Blackstone, and Wisdomtree are the largest foreign ETF funds, according to IIFL
