BetaShares Australian ETF Review | August 2018 | BetaShares Insights

BetaShares Australian ETF Review – August 2018

BY Ilan Israelstam | 12 September 2018
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ETF Review August 2018

Industry Breaks the $40B Barrier

The Australian ETF industry grew very strongly in August reaching a new record high of $41.5B. The industry grew a rapid 3.7% in the month ($1.5B), 2/3 of which was driven by asset appreciation particularly in the U.S. sharemarket. Read on for details of the month in ETFs.

Market cap

  • ASX Exchange Traded Funds Market Cap: $41.47B – new record high
  • Market cap growth for month: 3.7%, + $1.49M
  • Market cap growth for the last 12 months: 34%, + $10.6B

New money

  • New unit growth for month (units outstanding by number): +2.5%
  • Net new money (units outstanding by $ value): +$549.9 M

Comment: Net inflows remained strong not withstanding the asset growth with ~$550m of net new money flowing into the industry. 

 Products

  • 231 Exchange Traded Products trading on the ASX

Comment: For the second month in a row no new products were launched – however a number of new product announcements were made in the month, so we continue to expect a number of new funds to be launched by year end.

Trading value

  • Trading value +15% on previous month

Performance

Top 5 Category Inflows (by $) – August 2018

Category    Inflow Value
International Equities $312,095,410
Fixed Income $184,938,430
Cash $52,289,701
Multi-Asset $36,677,869
Australian Listed Property $15,467,172

Comment: As has been the case for each of the 8 months so far this year, international equities continued to be the largest category for inflows, with the second largest category once again being fixed income, which this month >$180m. 

Top Category Outflows (by $) – August 2018

Category                                 Outflow Value
Australian Equities ($52,948,261)
Currency ($18,545,253)

Comment: Net outflows were relatively limited this month, with some outflows in broad Australian equities. In addition, US dollar investors continued to take profits as the AUD weakened further. 

Top Sub-Category inflows (by $) – August 2018

Category Inflow Value              
International Equities – Developed World $182,535,994
Australian Bonds $162,982,723
Cash $52,289,701
International Equities – Sector $52,275,416
International Equities – US $41,412,153

Top Sub-Category Outflows (by $) – August 2018

Category  Outflow Value
Australian Equities – Broad ($72,264,096)
Currency ($18,545,253)
Australian Equities – High Yield ($13,447,192)
Australian Equities – Large Cap ($7,446,840)
International Equities – Europe ($5,062,768)