The September BetaShares review finds that the Australian ETF industry recorded another strong month of growth in September, reaching a record high of AUD32 billion in funds under management, an increase of 3.5 per cent (or AUD1076 million) on the previous month.
BetaShares reports that this level of growth was the sixth largest month of funds under management growth for the industry of all time. The majority of the increase (65 per cent or AUD687 million) was driven by new money inflows, with strong asset gains in global and US equities aiding the significant growth.
BetaShares Managing Director, Alex Vynokur (pictured), says: “The impressive growth of the ETF industry this month reflects its sustained popularity amongst investors.”
“As the industry grows, product options are increasing and ETFs are providing cost-effective and accessible solutions with intra-day liquidity that sets these products apart.”
Four new funds were launched in September, including two new active global equities funds.
For the second month running, global equities exposures received the largest flows, particularly via broad market developed world products. Best performing products were US small caps, as well as funds providing exposure to oil.
Outflows were limited, with only the Listed Property space receiving minor outflows at a category level. “The popularity of global products is pleasing to see. Exchange traded products provide a simple way to diversify portfolios, reducing the significant home bias which many local investors currently exhibit,” Vynokur says.