The Australian exchange traded fund industry has maintained its growth trajectory hitting a new record high of AUD20.8 billion in total funds under management (FUM), according to the BetaShares Australian ETF Review – November 2015.
The positive FUM growth of 1.4 per cent, or AUD300 million, for the month was recorded in spite of declines in the broader Australian and global share markets.
All of the industry’s growth throughout November came from net inflows, with AUD629 million of new money entering the industry. Largest inflows were recorded in Australian broad market exposures.
Net outflows continued to come from emerging markets equities in November, with a focus on Asian exposures, particularly in China.
The best performing products were Australian financials sector exposures, which gained 2 per cent for the month, despite the broad Australian share market declines.
There were 17 new products launched throughout the month, including BetaShares Managed Risk Australian Share Fund (managed fund) (ASX: AUST) and 16 new exchanged traded bonds, bringing the total number of products to 160.
BetaShares Managing Director, Alex Vynokur, says: “It is exciting to see that even during months when share markets have declined, the industry has continued to experience steady and consistent net inflows.
“We expect continued growth to the end of the year and into next year. The growth tells us that investors are confident in using ETFs with the aim of making money out of market volatility in addition to market stability.
“Furthermore, it appears that some investors are using the decline in the Australian share market as an entry point into Australian equities.
“In our end of year review for 2014, we predicted that the industry would end 2015 with FUM of AUD21 – AUD23 billion, which looks like coming to fruition,” he says.
