BetaShares reports that positive net inflows in July raised the Australian ETF industry assets by 2.3 per cent (or AUD688.4 million), to a new record high of AUD30.1 billion.
In a month where the Australian share market was flat, BetaShares reports that 100 per cent of the growth in assets came from net inflows, rather than asset appreciation.
In line with trends for the year to date, ETFs offering exposure to Broad Australian Equities continued to record the strongest inflows, followed by Broad Global Equities products. Fixed income ETFs also received strong inflows during the month.
Unhedged gold ETFs were sold off in the month of July, although given recent heightened tensions between North Korea and the US, BetaShares predicts that gold may return to favour.
Investors in more tactical exposures were rewarded in terms of performance this month, with the Strong Australian Dollar Fund (hedge fund) (ASX: AUDS) being the top performer as the Aussie dollar rallied. The Oil ETF (ASX: OOO) recorded the second-best performance of the month.
BetaShares Managing Director, Alex Vynokur (pictured) says: “Hitting the AUD30 billion milestone is a significant achievement for the Australian ETF industry and an unequivocal sign of investors’ strong adoption and understanding of ETF products.”
“The size of the industry today also reflects the value that ETFs have delivered to investors in Australia, in terms of ease of access to all major asset classes, convenience and product transparency,” he concluded.
The total number of exchange traded products available on the ASX remained unchanged at 212.