Asia-Pacific ETF Industry - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Asia-Pacific ETF Industry in terms of assets under management value is expected to grow from USD 1.17 trillion in 2024 to USD 1.61 trillion by 2029, at a CAGR of 6.59% during the forecast period (2024-2029).
The Asia-Pacific ETF (exchange-traded fund) market has experienced substantial growth and diversification in recent years, reflecting the region's economic dynamism and increasing investor interest in passive investment vehicles. ETFs in this region encompass various asset classes, including equities, fixed income, commodities, and alternatives, catering to varying investor preferences and risk appetites.
One of the key reasons for the popularity of ETFs is their ability to provide broad market exposure, allowing investors to access a wide range of assets across various Asia-Pacific countries. This includes developed markets such as Japan, Australia, and South Korea and emerging markets like China, India, and Indonesia. Investing in ETFs can help investors diversify their portfolios and mitigate risks associated with investing in a single stock or sector.
The Asia-Pacific ETF market has also witnessed the launch of innovative and unique ETF products. For example, some ETFs offer leverage or inverse exposure, allowing investors to amplify their returns or profit from market downturns. Some ETFs incorporate smart-beta strategies, which aim to outperform traditional market-cap-weighted indexes by selecting stocks based on various factors such as value, quality, or momentum. In conclusion, the Asia-Pacific ETF market has experienced significant growth and offers investors various investment opportunities.
Asia Pacific ETF Market Trends
Equity ETFs Dominate the ETF Market
Equity ETFs (exchange-traded funds) in Asia-Pacific (APAC) represent a significant portion of the overall ETF market, offering investors exposure to diverse equity markets across the region. These ETFs track various indices, including regional benchmarks like the MSCI Asia-Pacific Index and country-specific or sector-specific indices. Japan, as one of the largest economies in the APAC region, hosts a considerable number of equity ETFs. For example, the iShares MSCI Japan ETF (EWJ) is one of the oldest and most popular ETFs tracking Japanese equities. It exposes investors to large and mid-cap Japanese companies across various sectors.
China, another key player in the APAC equity market, has seen rapid growth in its ETF ecosystem. ETFs tracking Chinese equities offer exposure to both mainland-listed A-shares and offshore-listed H-shares, providing investors access to the world's second-largest equity market. The Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) is an example of tracking the CSI 300 Index, which comprises the largest and most liquid A-shares listed on the Shanghai and Shenzhen stock exchanges.
Overall, equity ETFs in the APAC region offer investors a feasible and cost-effective way to access a diverse range of equity markets, catering to varying investment objectives and risk appetites. With the region's economic growth and increasing investor interest, the APAC equity ETF market is poised for continued expansion in the years ahead.
Japan Leading the ETF Market in the Region
Japan stands out as a leading market for Equity ETFs in the Asia-Pacific (APAC) region. Japan's Equity ETF market is one of the most developed and mature in the region, driven by factors such as the country's robust financial infrastructure, significant investor participation, and a wide array of ETF offerings.
The Tokyo Stock Exchange (TSE) is a key platform for trading Equity ETFs, with a diverse range of products tracking various indices, including the Nikkei 225, Topix, and JPX-Nikkei Index 400. These indices expose Japan's well-established companies across different sectors, offering investors opportunities for diversification and portfolio growth.
One notable example is the iShares MSCI Japan ETF (EWJ), which tracks the performance of the MSCI Japan Index, comprising large and mid-cap Japanese equities. EWJ is one of the largest and most actively traded equity ETFs focusing on Japan, providing investors with exposure to the country's dynamic equity market.
Japan's equity ETF market has witnessed steady growth in assets under management (AUM) over the years, reflecting increasing investor interest in passive investment strategies and the convenience ETFs offer for gaining exposure to Japan's equity market. With ongoing regulatory initiatives promoting ETF innovation and market liquidity, Japan is poised to remain a leading hub for equity ETFs in the APAC region.
Asia Pacific ETF Industry Overview
The Asia-Pacific ETF market is moderately consolidated, with players offering investors a wide range of options. Established global ETF providers like BlackRock's iShares and State Street Global Advisors dominate the market. Local players like Nikko Asset Management, Samsung Asset Management, and Mirae Asset Global Investments also have a strong presence. The competition is driving innovation, with the introduction of thematic ETFs and niche offerings catering to specific sectors or countries within the APAC region.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
The Asia-Pacific ETF (exchange-traded fund) market has experienced substantial growth and diversification in recent years, reflecting the region's economic dynamism and increasing investor interest in passive investment vehicles. ETFs in this region encompass various asset classes, including equities, fixed income, commodities, and alternatives, catering to varying investor preferences and risk appetites.
One of the key reasons for the popularity of ETFs is their ability to provide broad market exposure, allowing investors to access a wide range of assets across various Asia-Pacific countries. This includes developed markets such as Japan, Australia, and South Korea and emerging markets like China, India, and Indonesia. Investing in ETFs can help investors diversify their portfolios and mitigate risks associated with investing in a single stock or sector.
The Asia-Pacific ETF market has also witnessed the launch of innovative and unique ETF products. For example, some ETFs offer leverage or inverse exposure, allowing investors to amplify their returns or profit from market downturns. Some ETFs incorporate smart-beta strategies, which aim to outperform traditional market-cap-weighted indexes by selecting stocks based on various factors such as value, quality, or momentum. In conclusion, the Asia-Pacific ETF market has experienced significant growth and offers investors various investment opportunities.
Asia Pacific ETF Market Trends
Equity ETFs Dominate the ETF Market
Equity ETFs (exchange-traded funds) in Asia-Pacific (APAC) represent a significant portion of the overall ETF market, offering investors exposure to diverse equity markets across the region. These ETFs track various indices, including regional benchmarks like the MSCI Asia-Pacific Index and country-specific or sector-specific indices. Japan, as one of the largest economies in the APAC region, hosts a considerable number of equity ETFs. For example, the iShares MSCI Japan ETF (EWJ) is one of the oldest and most popular ETFs tracking Japanese equities. It exposes investors to large and mid-cap Japanese companies across various sectors.
China, another key player in the APAC equity market, has seen rapid growth in its ETF ecosystem. ETFs tracking Chinese equities offer exposure to both mainland-listed A-shares and offshore-listed H-shares, providing investors access to the world's second-largest equity market. The Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) is an example of tracking the CSI 300 Index, which comprises the largest and most liquid A-shares listed on the Shanghai and Shenzhen stock exchanges.
Overall, equity ETFs in the APAC region offer investors a feasible and cost-effective way to access a diverse range of equity markets, catering to varying investment objectives and risk appetites. With the region's economic growth and increasing investor interest, the APAC equity ETF market is poised for continued expansion in the years ahead.
Japan Leading the ETF Market in the Region
Japan stands out as a leading market for Equity ETFs in the Asia-Pacific (APAC) region. Japan's Equity ETF market is one of the most developed and mature in the region, driven by factors such as the country's robust financial infrastructure, significant investor participation, and a wide array of ETF offerings.
The Tokyo Stock Exchange (TSE) is a key platform for trading Equity ETFs, with a diverse range of products tracking various indices, including the Nikkei 225, Topix, and JPX-Nikkei Index 400. These indices expose Japan's well-established companies across different sectors, offering investors opportunities for diversification and portfolio growth.
One notable example is the iShares MSCI Japan ETF (EWJ), which tracks the performance of the MSCI Japan Index, comprising large and mid-cap Japanese equities. EWJ is one of the largest and most actively traded equity ETFs focusing on Japan, providing investors with exposure to the country's dynamic equity market.
Japan's equity ETF market has witnessed steady growth in assets under management (AUM) over the years, reflecting increasing investor interest in passive investment strategies and the convenience ETFs offer for gaining exposure to Japan's equity market. With ongoing regulatory initiatives promoting ETF innovation and market liquidity, Japan is poised to remain a leading hub for equity ETFs in the APAC region.
Asia Pacific ETF Industry Overview
The Asia-Pacific ETF market is moderately consolidated, with players offering investors a wide range of options. Established global ETF providers like BlackRock's iShares and State Street Global Advisors dominate the market. Local players like Nikko Asset Management, Samsung Asset Management, and Mirae Asset Global Investments also have a strong presence. The competition is driving innovation, with the introduction of thematic ETFs and niche offerings catering to specific sectors or countries within the APAC region.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
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
4.2.1 Accessible Investment Platforms
4.2.2 Growing Culture of Financial Investment
4.3 Market Restraints
4.3.1 Limited Investor Awareness
4.3.2 Regulatory Frameworks across Countries Creating Barriers for ETF Issuers and Investors
4.4 Market Opportunities
4.4.1 Collaborations between ETF Providers, Financial Institutions, and Technology Firms
4.4.2 Adoption of Advanced Technologies like Blockchain and Artificial Intelligence
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Buyers
4.5.2 Bargaining Power of Suppliers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Insights into Technology Innovations in the Market
4.7 Insights into Regulatory Landscape Impacting the Market
4.8 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 China
5.2.2 India
5.2.3 Japan
5.2.4 South Korea
5.2.5 Australia
5.2.6 Rest of Asia-Pacific
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 BlackRock's iShares
6.2.2 Nikko Asset Management
6.2.3 Mirae Asset Global Investments
6.2.4 State Street Global Advisors
6.2.5 Daiwa Asset Management
6.2.6 Mitsubishi UFJ Financial Group
6.2.7 Samsung Asset Management
6.2.8 Fortune SG Fund Management
6.2.9 China Asset Management
6.2.10 Nomura Asset Management Co. Ltd*
7 FUTURE MARKET TRENDS
8 DISCLAIMER AND ABOUT US
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
4.2.1 Accessible Investment Platforms
4.2.2 Growing Culture of Financial Investment
4.3 Market Restraints
4.3.1 Limited Investor Awareness
4.3.2 Regulatory Frameworks across Countries Creating Barriers for ETF Issuers and Investors
4.4 Market Opportunities
4.4.1 Collaborations between ETF Providers, Financial Institutions, and Technology Firms
4.4.2 Adoption of Advanced Technologies like Blockchain and Artificial Intelligence
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Buyers
4.5.2 Bargaining Power of Suppliers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Insights into Technology Innovations in the Market
4.7 Insights into Regulatory Landscape Impacting the Market
4.8 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 China
5.2.2 India
5.2.3 Japan
5.2.4 South Korea
5.2.5 Australia
5.2.6 Rest of Asia-Pacific
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 BlackRock's iShares
6.2.2 Nikko Asset Management
6.2.3 Mirae Asset Global Investments
6.2.4 State Street Global Advisors
6.2.5 Daiwa Asset Management
6.2.6 Mitsubishi UFJ Financial Group
6.2.7 Samsung Asset Management
6.2.8 Fortune SG Fund Management
6.2.9 China Asset Management
6.2.10 Nomura Asset Management Co. Ltd*
7 FUTURE MARKET TRENDS
8 DISCLAIMER AND ABOUT US
