Betashares Australian ETF Review: October 2024

Australian ETF industry breaks annual net flow record

  • Continued strong net flows into the Australian ETF industry sees the annual record set during 2021 tumble, with two months still remaining in the year.
  • Year to date industry net flows to October were $23.7B, passing the previous annual record of $23.2B set in 2021. This trend is very similar to the experience overseas, with 2024 set to be a record breaking for the ETF industry both home and abroad.
  • More generally, strong net flows combined with positive market movements, pushed the Australian ETF industry to a new all-time high in assets under management.
  • October saw the ETF industry continue its strong momentum. The industry rose by 2.5% for the month, with the total market cap increasing by $5.6B. Total industry assets now stand at $232.5B – a new all-time record high.
  • Industry flows were very strong with $3.2B recorded for the month, the second all-time highest level for monthly flows on record.
  • ASX trading value was slightly higher month on month, at ~$11.9B for October.
  • Over the last 12 months the Australian ETF industry has grown by 52%, or $79.6B.
  • In terms of product launches, there were 4 new funds launched in October, including a moderately geared exposure to the GNDQ Wealth Builder Nasdaq 100 Geared (30-40% LVR) Complex ETF and the ARMR Global Defence ETF . Conversely, a climate transition focused active ETF was closed.
  • Digital asset exposures performed well, including the CRYP Crypto Innovators ETF .
  • October was another strong month for International Equities products ($1.2B), whilst Fixed income products also saw a strong month ($974 million), as did Australian Equities ($833 million).
  • Short funds ($8.6 million) and listed property ($500k) received very small redemptions over the month.

Australian ETF Industry AuM: July 2001 – October 2024

CAGR: Compound Annual Growth Rate. Source: ASX, CBOE

Market Cap

  • Australian Exchange Traded Funds Market Cap (ASX + CBOE): $232.5B – all time high
  • ASX CHESS Market Cap: $197.02B1
  • Market Cap change for October: 5%, $5.6B
  • Market cap growth for last 12 months: 52%, $79.6B

New Money

  • Net inflows for month: $3.2B

Products

Trading Value

  • ASX trading value was high at ~$11.9B for the month.

Performance

Industry Net Flows

Top Category Inflows (by $) – Month

 Broad Category Inflow Value
International Equities $1,242,433,066
Fixed Income $974,179,259
Australian Equities $832,607,850
Multi-Asset $115,446,209
Commodities $74,571,780

Top Category Outflows (by $) – Month

 Broad Category Inflow Value
Short ($8,646,052)
Listed Property ($546,353)

Top Sub-Category Inflows (by $) – Month

 Sub-Category Inflow Value
Australian Equities – Broad $706,376,944
Australian Bonds $691,124,049
International Equities – Developed World $616,956,266
Global Bonds $279,810,772
International Equities – US $257,824,033

Top Sub-Category Outflows (by $) – Month

 Sub-Category Inflow Value
Australian Equities – Sector ($25,432,731)
Australian Listed Property ($23,439,344)
Australian Equities – Short ($16,690,454)
International Equities – E&R – Ethical ($6,061,816)
International Equities – E&R – Sustainability ($3,015,997)

Performance

Top Performing Products – Month

 Ticker Product Name Performance (%)
ETPMPD Global X Physical Palladium 19.3%
CRYP Betashares Crypto Innovators ETF 18.8%
IBTC Monochrome Bitcoin ETF 18.1%
BTXX DigitalX Bitcoin ETF 17.4%
EBTC Global X 21Shares Bitcoin ETF 17.2%

1 Since February 2023, the ASX started reporting additional data on a CHESS-only basis. The primary use of such data is that it will exclude, amongst other things, the FuM and Flows in ‘dual class’ Active ETFs and potentially provide a more accurate picture of exchange traded activity.

This article mentions the following funds

Photo of Matthew Reeves

Written By

Matthew Reeves
Head of Product – Funds
Matt is our Head of Product – Funds, responsible for funds product strategy, delivery and execution. Matt has been with Betashares for over 9 years, previously in legal, risk and compliance roles. He holds a Bachelor of Business from Royal Melbourne Institute of Technology and a Bachelor of Laws from University of New England. Read more from Matthew.
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