| ANZ, the first of the big four banks to step in to the fast-growing market for exchange-traded funds, sees big opportunities to grow the market for the low-cost, index-matching funds beyond their current narrow base. Exchange-traded funds listed on the ASX have grown at an extraordinary 57 per cent pace over the year to June but have yet to gain the critical mass they enjoy in other markets such as the US, UK and Canada.
Part of the reason is that institutional investors in Australia have been slower than their counterparts in other parts of the world to incorporate ETFs into their portfolios. In the US, a recent study by Greenwich Associates found some 21 per cent of institutions use ETFs in their portfolios, rising to 40 per cent for US endowments and 33 per cent for large public pension funds...............................................Full Article: Source
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