BetaShares Australian ETF Review – November 2016

BY Ilan Israelstam | 13 December 2016
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In an historic month for global geopolitics, the Australian exchange traded funds industry reached new record highs, and also experienced its largest trading month on record. The industry ended the month at $24.6B – a new all-time record. In addition, the industry’s trading value reached $2.5B for the month, which was also a record, and indicates that investors are following the global trend of utilising exchange traded products to express investment views during significant market events.

Market Cap

  • ASX Exchange Traded Funds Market Cap: $24.6B – new all-time record
  • Market cap growth for month:  +2.3%, +$564.0m
  • Market cap growth for last twelve months: 17.5%, +$3.7B

New Money

  • New unit growth for month (units outstanding by number): 1.1%
  • Net new money (units outstanding by $ value): +$166.2m

Comment: In a departure from other months, in November, the bulk (70%) of the industry’s growth came from asset appreciation, as markets globally rallied

Products

  • 199 Exchange Traded Products trading on the ASX
  • No new products launched this month

Trading Value

  • Average trading value increased 40% vs. last month – all time record high

Comment: The fact that this month was an all-time high month for trading indicates that investors are increasingly looking at taking tactical views based on major market events via exchange traded products. From an industry development point of view, it’s pleasing to see Australia following the US’ lead in this regard.

Performance

  • Best performers this month were Palladium and US Small/Midcap exposures

Top 5 category inflows (by $) – November 2016

Category   Inflow Value
International Equities $ 77,935,657
Cash $ 73,326,145
Fixed Income $ 71,039,745
Commodities $ 15,693,949
Australian Listed Property $ 7,806,477

 

Top category outflows (by $) – November 2016

Category                Inflow Value
Currency ($ 28,749,108)
Short ($ 26,255,870)
Australian Equities ($ 25,234,863)

 

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