Australian ETF Review – May 2017

BY Ilan Israelstam | 13 June 2017
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Continued industry growth and inflows into Australian Equities ETFs

The Australian ETF industry recorded another strong month of growth, with total industry FuM at the end of May hitting a new high as the industry nears the $30B mark. Total industry FUM at month end was $29.0B, with growth of 2.6% or $730M for the month. In a month where the Australian market tumbled, almost all the growth came from net new money, rather than asset appreciation.

ETF Review May 2017

Market Cap

  • ASX Exchange Traded Funds Market Cap: $29.0B – New record high
  • Market cap growth for month:  +2.6%, + $733.7m
  • Market cap growth for last twelve months: 25.1%, +$5.8B

Comment: We’re excited to be getting close another ’round number’ milestone of $30B. Growth trajectory for the industry continues to be robust.

New Money

  • New unit growth for month (units outstanding by number): 3.0%
  • Net new money (units outstanding by $ value): +$657.8m

Products

  • 206 Exchange Traded Products trading on the ASX
  • 2 new products launched this month -VanEck Vectors Australian Corporate Bond Plus ETF (ASX: PLUS) and UBS IQ Cash ETF (ASX: MONY)

Comment: Over the next quarter, we expect to see more products based on the cash & fixed income. BetaShares recently launched our first bond fund, for example, our Australian Bank Senior Floating Rate Bond ETF (ASX: QPON).

Trading Value

  • Average trading value up 44% to be the second largest trading month on record (first largest set in February 2017)

Performance

Top 5 category inflows (by $) – May 2017

Category                                                          Inflow Value
Australian Equities $ 329,024,194
International Equities $ 202,022,526
Fixed Income $ 69,184,475
Commodities $ 39,293,600
Australian Listed Property $ 22,900,867

Top category outflows (by $) – May 2017

Category                                                                  Outflow Value
Currency ($ 7,031,273)
Cash ($ 4,861,572)

Top sub- category inflows (by $) – May 2017

Category                                                          Inflow Value
Australian Equities – Broad $ 248,128,970
Australian Equities – High Yield $ 80,771,568
International Equities – Developed World $ 76,299,954
Australian Bonds $ 53,279,231
International Equities – Sector $ 36,515,110

Top sub- category outflows (by $) – May 2017

Category                                                                      Outflow Value
Australian Equities – Large Cap ($ 10,633,455)
Currency ($ 7,031,273)
 Cash  ($  4,861,572)

 

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