BetaShares Australian ETF Review | February 2018 | BetaShares ETFs

BetaShares Australian ETF Review – February 2018

BY Ilan Israelstam | 14 March 2018
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ETF industry continues growth path as global markets fall

In a month where global equity markets fell significantly, the ETF industry managed to continue its growth trajectory. Total industry FuM at the month end was $36.9B, with the industry growing ~1% for the month ($339m). Trading value was also very strong, with ETF investors seeking out the liquidity of ETFs during a volatile month in equities – with the industry recording its second highest monthly trading value on record.

International equities continued to be the largest category for inflows, along with continued strong flows into fixed income. In addition, monthly outflows were limited at a category level, with the only category experiencing meaningful outflows being cash, primarily the result of institutional re-allocations rather than a particular sector trend.

Market cap

  • ASX Exchange Traded Funds Market Cap: $36.9B – New record high
  • Market cap growth for month: +0.6%, +$338.7m
  • Market cap growth for the last 12 months: 41.1%, +$10.7B

New money

  • New unit growth for month (units outstanding by number): 2.0%
  • Net new money (units outstanding by $ value): +$468.8m

Comment: Global sharemarkets posted negative returns and, as such, all of the growth in the industry came from net new money rather than asset appreciation.

Products

Comment: It is marked that the first two funds launched in 2018 were Active ETFs. We expect further Active ETF product launches over the rest of the year.

Trading value

  • Average trading value up 48% month on month to record the 2nd highest monthly value traded on record

Comment: Trading value was very strong this month, with ETF investors seeking out the liquidity of ETFs during a volatile month in equities.

Performance

Top 5 category inflows (by $) – February

Category                                                          Inflow Value
International Equities $ 219,498,096
Fixed Income $ 115,540,840
Australian Equities $ 115,322,258
Multi-Asset $ 31,333,922
Australian Listed Property $ 20,189,164

Top category outflows (by $) – February

Category                                                          Outflow Value
Commodities ($ 40,490,616)
Short ($ 455,450)

Top sub-category inflows (by $) – February

Category                                                          Inflow Value
International Equities – Developed World $ 109,752,093
Australian Bonds $ 95,617,653
Australian Equities – Resources Sector $ 62,337,480
Multi-Asset $ 31,333,922
International Equities – Sector $ 28,036,405

Top sub-category outflows (by $) – February

Category                                                          Outflow Value
Cash ($ 40,490,616)
Australian Equities – Short ($ 7,939,550)
Australian Equities – Broad ($ 689,877)