The November BetaShares Australian ETF Review reports that the Australian ETF fund industry reached a new record of AUD24.6 billion in funds under management in November, as investors traded heavily in response to the US election.
Industry FUM grew by 2.3 per cent (or AUD564 million) in November, with asset value appreciation representing 70 per cent (or AUD398 million) of the growth.
In addition, the industry hit another milestone, with AUD2.5 billion in trading value, the highest monthly traded value for the industry on record. “The record-breaking trading seen during November indicates that Australian investors are following the global trend of using exchange traded funds to express their investment views during significant market events, such as the recent U.S. elections,” says BetaShares Managing Director, Alex Vynokur (pictured).
At a category level, the highest inflows were in global shares products, cash and fixed income, while the highest outflows were in currencies, short exposures and Australian equities.
“The strong inflows seen in global equities may represent current optimism about Donald Trump’s election as the next US president and its impact on the economy, while the inflows in cash and fixed income suggest investors are concerned for the longer term,” says Vynokur.
“The outflows from Australian equities and currency exposures (mainly in USD) are possibly due to investor profit taking after the recent rally in both categories,” he adds.
At a product level, BetaShares reports that its Australian High Interest Cash ETF (ASX: AAA) received the highest inflows for the month (+AUD73 million), while SPDR S&P/ASX 200 fund (ASX: STW) experienced the biggest redemptions (-AUD139 million).
The best performing products in November were Palladium and Small/Mid Cap US exposures, which rallied as Trump secured his historic victory, Betashares says.
