Bringing you live news and features since 2006 

Australia map and flag

Australian ETF market hits new high

RELATED TOPICS​

The Australian exchange-traded fund (ETF) market continued to break new ground in March, reaching a record high of AUD10.5bn in funds under management, according to the BetaShares Australian ETF Review.

Approximately AUD200m of new money flowed into exchange-traded products in March, with inflows coming almost exclusively from new money rather than existing asset growth.
 
Total industry market capitalisation increased by two per cent over the month.
 
In a reversal of market trends from previous months, a significant number of investors exited Australian equities, with approximately AUD40m flowing out of funds offering these exposures – a sign that investors are cautious about the local equities market.
 
The two products experiencing the highest inflows for the month were the Australian High Interest Cash ETF and Equity Yield Maximiser fund, indicating investor demand for defensive and high-yielding strategies. Four of the top five categories by inflows this month were yield oriented, further exemplifying investors’ defensive positioning.
 
“Last month’s flows indicate that investors are showing some caution in regard to the Australian equities market. However, due to the variety of strategies available via exchange traded products, investors have been able to continue to express their investment views beyond simple broad-based equities exposures,” says Alex Vynokur, managing director of BetaShares. “With investors potentially feeling unsure about the future direction of the local equities market, many are taking the opportunity to construct a more defensive portfolio, incorporating cash and yield-focused strategies to guard against potential market volatility.”
 
In terms of performance, products offering agriculture exposure provided the best returns, particularly due to continued uncertainty on the future supply of soft commodities, given the effects of the US droughts.
 
“The best performing exposure each month this year to date has been commodities-based and highlights the value of the asset class in building a diversified portfolio, especially during times of equity market volatility,” says Vynokur.

Latest News

REX Shares has announced a strategic reorganisation that integrates its REX Shares, MicroSectors, and T-REX products, as well as REX..
Allspring Global Investments writes that as it builds an investment platform for the future, it has filed for exemptive relief..
LSEG Lipper writes that ETF promoters in Europe enjoyed estimated net inflows (+EUR25.1 billion) for May 2024...
The European Fund and Asset Management Association (EFAMA) has published its 2024 industry Fact Book, which includes a foreword by..

Related Articles

Marcus Wayerer, Franklin Templeton
Franklin Templeton says that emerging markets are navigating a tricky environment at the moment, due to factors such as the...
Matt Barry, Touchstone Investments
Back in 2022, Cincinnati, Ohio-based Touchstone Investments launched its first four ETFs, having previously been predominantly a mutual fund company....
CN Tower, Toronto
The winners were announced in the second ETF Express Canadian awards at the event held at The Quay in Toronto,...
Darren Jordan, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
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