The BetaShares Australian ETF Review reports that the Australian ETF industry grew by nearly AUD600 million in January, with total funds under management (FUM) reaching an all-time record high of AUD36.6 billion.
New inflows accounted for 75 per cent (or AUD432 million) of the FUM growth, with asset value appreciation accounting for the remaining 25 per cent of the growth, aided by a strong performance in global markets.
The largest flows by category were in International Equities, with strong demand for global and Asian Equities. Flows into Australian Bonds were also strong in January, with investors continuing to allocate to this asset class given recent sharemarket volatility, BetaShares says.
The best performing exchange traded product in January was the BetaShares Geared US Equities Fund (hedge fund) (ASX: GGUS), followed by Chinese equities exposures.
BetaShares Managing Director, Alex Vynokur, says: “Although January is usually a quiet month among investors, the Australian ETF industry has still managed to reach a new record.”
“January was an interesting month too because of the allocations seen beyond the broad global equity ETFs, which included increased investments in Asia and Emerging Markets.
“These flows show that Australian investors are developing specific views in the international markets and implementing those views through ETFs, which deliver a cost-effective and simple way to access diversified overseas exposures.”
The number of ETPs trading on the ASX remained at 226.
