The Exchange-traded fund market is expected to increase in assets from $1.17 trillion in 2024 to $1.61 trillion by 2029, with a projected compound annual growth rate (CAGR) of 6.59%. This reflects the growing interest among investors in passive investment strategies across the region. Market research reports that Equity ETFs dominate the market, particularly in developed countries like Japan, South Korea, and Australia, but also offer opportunities in emerging markets such as China and India. With the rise of thematic ETFs and sector-specific funds, investors are exploring more diversified strategies. Additionally, liquidity in the region remains competitive, though bid-ask spreads in Asia-Pacific ETFs have slightly widened to 18.8 basis points as of Q3 2023.
As of 2024, exchange-traded funds (ETFs) in Thailand continue to grow, with several key developments in the market. Notably, the Thai SEC approved its first Bitcoin ETF, allowing investors exposure to digital assets such as Bitcoin according to an article in the Bangkok Post. This ETF is designed for wealthy and institutional investors, with a high-risk investment profile, reflecting Bitcoin’s average return of 124% per year but also its high volatility. This move aligns with global trends as similar funds are being launched in markets like the U.S. and Hong Kong. Based on a report by the Thailand Stock Market (SET 50), the ThaiDex SET50 ETF, which tracks the SET50 index (a benchmark index of the Stock Exchange of Thailand), continues to be a major player in the ETF market, focusing on large-cap Thai stocks. ETFs in Thailand remain popular as a tool for investors looking to diversify with lower costs compared to traditional funds.
As ETF gains its footing in Thailand to situate high expectations for the market, government and financial regulators must empower local businesses to diversify their approach to the trading scene. Exchange Traded Fund (ETF) by Trueventus is a timely workshop for professionals looking to expand their market horizon and augment increased investment for higher returns. Tap into the minds of financial experts to ensure a stable and secure path to capital markets.
