Liquidity, tracking error key for Asian ETF users

Institutional use of exchange-traded funds in Asia-Pacific may lag well behind that in the US, but it is evolving along similar lines, according to a survey* from Greenwich Associates and State Street Global Advisors (SSgA). Asian institutional investors still do much, probably most, of their buying of ETFs offshore, usually of US-listed funds; in fact, four in 10 buy exclusively on foreign exchanges. That is not surprising, since the greatest ETF liquidity and trading volumes – a…