Bringing you live news and features since 2006 

Australia map and flag

Australian ETF market continues upward trend

RELATED TOPICS​

The Australian exchange-traded fund industry continued its upward trend reaching AUD5.7bn in assets under management, an all-time industry high, as at the end of September 2012, according to BetaShares’ Australian ETF Review for September.

While market capitalisation of the ETF industry grew 3.9 per cent for the month, this was attributable to a rise in underlying asset prices rather than an increase in units outstanding or new inflows into ETFs.

Currency hedged and unhedged gold products were popular among investors this month after the US announced its plans for a third round of quantitative easing in early September. Apart from the precious metal, income was again the prevalent theme with investors as high dividend and cash ETFs remained popular rather than fixed income.

“With QE chatter reaching fever pitch before it was officially announced, strong inflows into gold ETFs were reflective of investors looking to profit from the upswing experienced during QE1 and QE2,” says Drew Corbett, head of investment strategy at BetaShares.

Despite the debasement of the US currency, another popular ETF during September was the US Dollar ETF which suggests investors continue to believe the AUD may still be overvalued relative to the US Dollar.

“The US Dollar ETF trading activity was similar to the S&P 500 ETF, a fund which is almost four times the size in terms of assets under management,” Corbett says.
 
Investors slowly came back to trading this month as ETF trading values were up five per cent for the month but coming off a low base.

“Despite the slight increase in trading activity, ETF activity is still relatively subdued. Despite this, there were still returns to be found in the ETF industry with the top five performing ETFs on the ASX all returning over 20 per cent for the year to end September,” Corbett says.

Latest News

European ETFs raised USD47.8 billion in Q1, a 15 per cent increase compared to the same period in 2023, according..
LSEG Lipper’s March report finds that globally equity ETFs (+EUR113.2 billion) enjoyed the highest estimated net inflows for the month,..
Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by