CHARTS: Australia’s underperforming market is driving local investors to send money offshore

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While US stocks have recently been trading at all-time highs, the local market here in Australia is still languishing more than 20% below 2007’s ASX 200 peak around 6850.

Why that might be the case is not difficult to understand given the end to the mining and commodity boom’s impact on Australia miners and the regulatory headwinds that have beset the big banks more recently.


But the underperformance is driving investors into offshore markets according to Shaun Parkin, head of State Street Global Advisors SPDR ETFs.

Parkin told Business Insider there had been an explosion in the amount of money being invested into the exchange traded funds with a specific focus on investing in offshore markets because “investors in Australia recognise that there is a big overweight in Australian markets to the research and financial sectors”.

That means “offshore ETFs are the fastest growing sector of Australia’s ETF market” which celebrated its 15th birthday in August this year, Parkin said.

Here’s their story so far: