As the second month of 2016 continued the market falls started at the beginning of the year, the resilience of the ETF industry was tested. However, with Australian and global markets falling ~2% (in AUD terms), the ETF industry impressively managed to record both positive market cap growth and positive net inflows in February. The industry ended the month up on January, and was valued at a total of $20.6B, recording a small increase of 1% or $223m for the month.
Market Size & Growth
- ASX Exchange Traded Funds Market Cap: $20.6B
- Market cap growth for month: +1.0%, +$223m
- Market cap growth for last twelve months: 21.4%, +$3.7B
Comment: The industry ended the month up on January, and was valued at a total of $20.6B, recording a small increase of 1% or $223m for the month
- New unit growth for month (units outstanding by number): 2.0%
- Net new money (units outstanding by $ value): +$181.0m
Comment: As should be expected given falls in share markets, the majority (~80%) of the growth this month came from new money of approximately ~$181m
- 169 Exchange Traded Products trading on the ASX
- No new products launched this month
Average trading value decreased -7% month on month
Best performers this month were Gold Miners, Australian Resources and Physical Gold Bullion Exposures
Comment: Gold exposures really shined during the month, attracting a lot of attention as investors took to traditional ‘safe haven’ assets during the market turmoil.
Top 5 category inflows (by $) – February 2016
|International Equities – Developed||$35,835,288|
|Aus. High Yield||$32,262,431|
|Aus. Fixed Income||$25,606,753|
|Aus. Equities – Broad||$22,184,504|
Comment: Market conditions were also evident in the substantial flows in ‘risk-off’ exposures such as the BetaShares Australian High Interest Cash ETF (AAA) which received inflows of $35m as well Gold Bullion exposures which received inflows of over $20m.
Top category outflows (by $) – February 2016
|Aus. Equities – Small Cap||($4,963,971)|
Comment: For the second month in a row, significant selling was sustained by Australia’s largest ETF, STW, which received net outflows of ~$60m