BetaShares Australian ETF Review - February 2014 | BetaShares

BetaShares Australian ETF Review – February 2014

BY Ilan Israelstam | 10 March 2014
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Last week we released our monthly Australian ETF Review for February 2014, which indicated that, after a slow January, the Australian exchange traded fund industry re-commenced its fast growth trajectory and reached a new record high of $10.3B. Industry market capitalisation grew 5% for the month on stronger trading value. Highlights of the report follow:

Market Cap

  • ASX Exchange Traded Funds Market Cap: $10.3B – New record high
  • Market cap growth for month:  +5.0%, +$283.7m

New money

  • New unit growth for month (units outstanding by number): 3.0%
  • Net new money (units outstanding by $ value): +$235.4m
Comment: In what has become a recurring theme for this industry, another record high was reached this month, the industry getting the ‘double whammy’ of both positive market movements and unit growth.

Products

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

Trading Value

  • Trading value increased +9.7% month on month

Performance

  • Broad agriculture products the best performers for the month

Comment: Commodities often find their way into the monthly performance rankings, and this month the best performer was QAG, which provides broad agricultural exposure. Strong performance like this provides an example of why we often talk to clients about the inclusion of commodities into balanced portfolios.

Top Inflows by Category

Category Inflow Value
Aus. Equities   – Broad $66,012,780
International Equities – Developed $46,888,280
Aus. High   Yield $46,791,922
A-REIT Sector $25,594,494
Aus. Equities – Small Cap $22,970,454
Comment: Thematic inflows were very similar to January, with majority of the month’s flows into Australian equity exposures and additional continued inflows into international developed market equities (Europe in particular). However in a sign of investor caution regarding continued equity markets growth, investors sought out short Australian equity exposure with the BEAR fund receiving ~$18m net inflows for the month on significantly larger trading volume.

Top Outflows by Category

Category Outflow Value
Commodities ($16,830,307)

 Comment: Relatively small net outflows by asset class this month, the majority coming from unhedged gold (mirroring last month).

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