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Aussie ETF industry breaks records

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Aussie ETF provider BetaShares writes that the Australian ETF industry grew by more than AUD2 billion in November, breaking multiple industry records including records for monthly net inflows, industry growth and value traded.

Total funds under management (FUM) reached an all-time record high of AUD35.5 billion, representing a significant growth rate of 6 per cent for the month, according to the BetaShares Australian ETF Review – November 2017.

Net inflows accounted for the majority of FUM growth for the month, accounting for AUD1.3 billion. Asset value appreciation added the remaining AUD700 million to the monthly increase.

Average daily trading value increased by 38 per cent from the previous month, reaching a new high of AUD3.7 billion for the month. BetaShares Managing Director, Alex Vynokur, (pictured) says: “The growth across all metrics in the ETF industry is impressive. The increased demand we’re currently seeing can likely be attributed to the core benefits offered by ETFs to investors – cost-effectiveness, access, transparency and liquidity.”

Australian equities once again received the largest amount of new money this month. This included the largest single trade into an ASX-quoted ETF – a trade of AUD430 million into a broad Australian equities ETF, believed to be from an Australian institution.

“Although institutional adoption of ETFs has been slower than with the retail market, we are seeing more Australian institutions adopting ETFs as part of their investment portfolio. As such, we expect mega-trades like this to start becoming increasingly common in our market,” says Vynokur.

November also saw a total of six new products launched, including the first Active ETF offering exposure to a portfolio of Hybrids, BetaShares Active Australian Hybrids Fund (managed fund) (ASX: HBRD). In addition, a new Australian ethical ETF (ASX: FAIR) was launched as well as several funds providing exposure to multi asset portfolios.
The best performing funds during the month were those based around global and US Equities, which continued to outperform Australian Equities.

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