Bringing you live news and features since 2006 

Australian ETF industry tops AUD11 billion

RELATED TOPICS​

Australian exchange-traded fund investors are favouring defensive cash and yield-oriented funds, with approximately AUD135 million flowing into these products in April, according to BetaShares’ latest ETF Review.

Another record month saw the Australian exchange-traded product (ETP) market break through the AUD11 billion barrier in funds under management at the end of April.
 
The market grew by 4.3 per cent in the month, and has now grown approximately 50 per cent over the last 12 months.
 
Total monthly market growth amounted to AUD452 million with approximately AUD300 million of growth coming from new money inflows.
 
Highlighting investor appetite for yield, Australian high yield equities products were the most popular product category by inflows during April, while the top individual product for net inflows was the Cash ETF.
 
“Exchange-traded products in Australia are increasingly becoming mainstream, with assets under management expanding rapidly. Growth is being driven by an increase in confidence around global markets as well as familiarity by investors with exchange traded funds. Growth continues to be strongest in domestic and international equities, high yield and cash oriented products,” says Alex Vynokur, managing director of BetaShares.
 
Net outflows were virtually non-existent in April, with small outflows recorded in gold exposures.
 
“ETPs make it easy for investors to access a range of targeted exposures, and to implement portfolios strategies consistent with their views on the market. April’s outflows were minimal suggesting a bullish sentiment towards exposures across most asset classes,” says Vynokur.
 
In terms of performance, two of the top five products for the month were commodities based while A-REITs also rallied.
 
“Commodities-based exposures have consistently been amongst the best performing asset class each month this year to date, despite trading activity in these funds being low. This suggests investors are missing out on potential opportunities available from the commodities asset class,” he adds.

Latest News

ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..
Investors urgently need greater access to diversified investment strategies aligned with the Paris Agreement on climate change if the world..

Related Articles

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.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
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