BetaShares Australian ETF Review – July 2016

BY Ilan Israelstam | 16 August 2016
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The Australian exchange traded funds industry hit an all-time high for funds under management in July, reversing a rare month of negative growth in June. The industry ended the month at $23.4B, growing approx. $900m for the month (4% monthly growth). Despite strong sharemarket performance throughout the month, investors still seem cautious with strong inflows in cash and fixed income.

Market Size & Growth

  • ASX Exchange Traded Funds Market Cap: $23.4B – New all-time record
  • Market cap growth for month:  +4%, +$894.3m
  • Market cap growth for last twelve months: 17.5%, +$3.5B

New Money

  • New unit growth for month (units outstanding by number): +2.5%
  • Net new money (units outstanding by $ value): +$215.3m

Comment: Strong sharemarket performance aided the industry’s growth, with over 70% of the month’s growth coming from asset value appreciation.

Products

  • 179 Exchange Traded Products trading on the ASX
  • 4 new products launched this month
  • 1 product closure this month

Comment:  We added two new funds to the Global Sector Series – BetaShares Global Energy Companies ETF – Currency Hedged (FUEL), BetaShares Global Gold Miners ETF – Currency Hedged (MNRS). Magellan and ANZ ETFs each launched a new product. VanEck Vectors Emerging Resources ETF (MVE) was closed and replaced under the same code by a Mid-Cap Exposure. 

Trading Value

Average trading value increased 51% month on month

Performance

Best performers this month were Palladium and the BetaShares Geared Australian Equity Fund (GEAR)

Top 5 category inflows (by $) – Month

Category Inflow Value
International Equities $153,298,296
Fixed Income $123,006,948
Cash $75,549,376
Australian Listed Property $13,996,816
Currency $9,121,007

Top 5 category outflows (by $) – May 2016

Category Outflow Value
Australian Equities ($157,224,539)
Short ($4,411,030)

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