Asia-Pacific ETF Industry Market Size
| Study Period: | 2019- 2028 |
| CAGR: | > 8.5 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Asia-Pacific ETF Industry Market Analysis
The Asia-Pacific ETF Market has generated a revenue of USD 120 billion in the current year and is poised to register a CAGR of 8.5% over the forecast period.
The Asia-Pacific (APAC) region is now firmly fixed in the minds of global asset managers as a target market, and for good reason. Out of the region’s unprecedented economic boom has emerged an upwardly mobile and dynamic urban middle class. In China alone, nearly 400 million people are defined as being middle class, while investable assets in the country are projected to reach USD 40 trillion in the coming three years. Throughout APAC, there is also a flourishing HNWI (high-net-worth individual) population that is more substantial than that in North America and worth around USD 21.6 trillion.
Assets invested in APAC-domiciled ETFs have experienced strong growth over the last three years. New types of ETF products are finding favor across APAC too. Fixed-income ETFs, which have accumulated sizable investor inflows globally, are now becoming increasingly popular in the region due to their liquidity, transparency, and risk diversification.
For improving ETF regulations in 2019, the "ETF" rule was adopted by the US Securities and Exchange Commission and applied to all ETFs traded on the US exchange. In India, an ETF consists of a bundle of shares or options listed on a stock exchange such as the National Stock Exchange or Bombay Stock Exchange. Each ETF is assigned a stock exchange code and can be bought and sold by investors similar to the way they buy and sell shares.
A growing number of European UCITS ETF issuers are looking to tap into the growing APAC investor market. This is especially true in places where local allocators already buy a lot of other UCITS products. Several major markets, including Hong Kong, do not have a fee-based distribution model, so distributors, who are often retail or private banks, have limited incentive to sell ETFs to clients.
Asia-Pacific ETF Industry Industry Segmentation
An ETF is an exchange-traded fund and is traded on an exchange just like stocks are. The price of an ETF share changes throughout the trading day as shares are bought and sold in the market.
The Asia-Pacific ETF industry is segmented based on ETF types (equity ETF, fixed income ETF, real estate ETF, commodity ETF, currency ETF, and specialty ETF) and by country (Singapore, Malaysia, Hong Kong, China, Taiwan, and Rest of Asia Pacific). The report offers market size and forecasts for the Asia Pacific ETF industry in terms of volume (number of firms) and value (USD billion) for all the above segments.
| Types of ETFs | |
| Fixed Income ETFs | |
| Equity ETFs | |
| Commodity ETFs | |
| Currency ETFs | |
| Real Estate ETFs | |
| Specialty ETFs |
| By Country | |
| Singapore | |
| Malaysia | |
| Hong Kong | |
| China | |
| Taiwan | |
| Rest of Asia-Pacific |
Asia-Pacific ETF Industry Market Trends
Increasing ETFs Product in APAC region
Assets under management (AuM) in APAC ETFs stood at USD 589 billion in June 2019, having more than doubled in size from December 2015, when industry-wide AUM was at USD 249 billion. Of this, the majority of the region’s assets (USD 352 billion) reside in ETFs domiciled in Japan, fueled by the massive ETF purchase program by the country’s Central Bank.
Taiwan’s fixed-income ETF market has amassed more than USD 16 billion, overtaking South Korea on an AuM basis. Taiwan’s fixed-income ETF market, which tracks mostly US Treasuries and China's policy financial debt, emerged more by regulatory quirk than design.
iShares MSCI Japan ETF and JP Morgan BetaBuilders Japan ETF existed among the largest traded funds (ETFs) in the Asia-Pacific region traded in the United States as of April 2022, with AUM existing at USD (10.29, 7.76) billion.
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Asia Pacific Leading In Fund Flow to ETFs
Despite the impressive AuM growth, APAC ETFs still only account for 10.7% of the global USD 5.49 trillion in ETF assets. A large percentage of the world’s ETFs are located in APAC. Of the 6,736 ETFs listed worldwide, 1,466 (21.8%) are domiciled in APAC, owing to the fragmented nature of the region’s markets and their relative development, at least when benchmarked against the US.
For investments in stocks from Asia, there are seven indices available, and the total expense ratio of an ETF on these indices is between 0.10% p.a. and 0.74% p.a. In year 2023, Asia-Pacific ETFs varied by regions, with large share of the Asia-Pacific ETF'S lying in country of Japan and Hong Kong.
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Asia-Pacific ETF Industry Industry Overview
The report includes an overview of ETF operating companies across the region. This report aims to present detailed profiles of a few major companies that cover their product offerings, regulations governing them, their headquarters, and financial performance. Currently, some of the major players dominating the market are listed below.
Asia-Pacific ETF Industry Market Leaders
Nikko Asset Management Co., Ltd.
Nomura Asset Management Co., Ltd.
Daiwa Asset Management Co. Ltd.
Mitsubishi UFJ Financial Group
iShares - BlackRock
*Disclaimer: Major Players sorted in no particular order
Asia-Pacific ETF Industry Market News
- May 2022: Nomura entered into an agreement to acquire shares in New Forest Pty Ltd. which is one of the leading forestry asset management companies. As a result of an acquisition, Nomura will own 41% of New Forests shares.
- December 2022: Nikko Asset Management Co., Ltd. announced the new ETF: Listed Index Fund US Equity (Dow Average) No Currency Hedge. It was launched on 13th December and was listed on the Tokyo Stock Exchange on 16th December.
APAC ETF Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Insights into Technology Innovations in the Market
4.6 Insights into Regulatory Landscape Impacting the Market
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 Types of ETFs
5.1.1 Fixed Income ETFs
5.1.2 Equity ETFs
5.1.3 Commodity ETFs
5.1.4 Currency ETFs
5.1.5 Real Estate ETFs
5.1.6 Specialty ETFs
5.2 By Country
5.2.1 Singapore
5.2.2 Malaysia
5.2.3 Hong Kong
5.2.4 China
5.2.5 Taiwan
5.2.6 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Nomura Asset Management Co Ltd.
6.2.2 Nikko Asset Management
6.2.3 Daiwa Asset Management
6.2.4 Mitsubishi UFJ Financial Group
6.2.5 iShares - BlackRock
6.2.6 Samsung Asset Management
6.2.7 State Street
6.2.8 Fortune SG Fund Management
6.2.9 China Asset Management
6.2.10 Yuanta*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
APAC ETF Market Research FAQs
What is the study period of this market?
The Asia-Pacific ETF Industry is studied from 2019 - 2028.
What is the growth rate of Asia-Pacific ETF Industry?
The Asia-Pacific ETF Industry is growing at a CAGR of >8.5% over the next 5 years.
Who are the key players in Asia-Pacific ETF Industry?
Nikko Asset Management Co., Ltd., Nomura Asset Management Co., Ltd., Daiwa Asset Management Co. Ltd., Mitsubishi UFJ Financial Group, iShares - BlackRock are the major companies operating in Asia-Pacific ETF Industry.
Asia-Pacific ETF Industry Industry Report
Statistics for the 2023 Asia-Pacific ETF Industry market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia-Pacific ETF Industry analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
