BetaShares Australian ETF Review - February 2019 | BetaShares

BetaShares Australian ETF Review – February 2019

BY Ilan Israelstam | 13 March 2019
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Aus ETF Review-Feb19

Reading time: 4 minutes

All time monthly growth record smashed!

  • The Australian ETF industry continued its strong growth in the early months of 2019, reaching a fresh record high and recording its largest ever monthly FuM increase
  • The industry ended February at a record $44.8B, with market cap increasing by 5.4% (+$2.3B). The monthly growth figure of $2.3B eclipses the previous record of $2B of FuM growth achieved in November 2017
  • With markets rebounding, the industry growth this month came primarily from price increases, which accounted for ~80% of the monthly result – the remaining ~20% being due to net inflows of ~$524m
  • International equities were once again the category with the greatest level of inflows, followed by Australian Bonds and Cash
  • From a performance perspective, given the tremendous rebound in their equity market, Chinese exposures performed most strongly
  • Net outflows at a category level were limited, and relegated to small amounts of profit taking in gold exposures.

Market cap

  • ASX Exchange Traded Funds Market Cap: $44.8B
  • Market cap increase for month: 5.4%, +$2,300M – Largest increase on record
  • Market cap growth for last 12 months: 21%, + $7.9B

Comment: The Industry’s market cap continued its recovery from January, growing by a record $2.3B (+5.4%) in February, exceeding its previous record of  $2B monthly growth achieved in November 2017. 

New money

  • New unit growth for year (units outstanding by number): +1.5%
  • Net new money for month (units outstanding by $ value): +$524.7M

Products

  • 242 Exchange Traded Products trading on the ASX – no new products launched, 4 products matured

Trading value

  • Trading value increased 24% for the month

Comment: As asset prices rose in February, so too did market sentiment, contributing to a 24% increase in trading value by ETF investors.

 

Performance

  • Top performing products this month were Chinese equities exposures, followed by Palladium

 

Top 5 category inflows (by $) – February 2019

Category                                               Inflow Value
International Equities $ 211,844,216
Fixed Income $ 151,039,378
Cash $40,696,744
Australian Equities $ 37,492,207
Short $ 36,889,060

Comment: International Equities and Fixed Income continued to take up the largest portion of inflows in February, repeating the trend we saw across much of 2018.

Top category outflows (by $) – February 2019

Category                                                  Outflow Value
Commodities ($3,284,658)

 

Top sub-category inflows (by $) – February 2019

Sub-Category   Inflow Value
International Equities – Developed World $ 136,479,518
Australian Bonds $ 120,786,563
Cash $ 40,696,744
Australian Listed Property $ 32,868,100
Global Bonds $ 30,252,814

Comments: Even though markets continued to rally during the month, ETF investors maintained a relatively cautious stance, investing relatively heavily in Australian and Global Bonds and Cash, along with global equities exposures.

Top sub-category outflows (by $) – February 2019

Sub-Category                                                 Outflow Value
Australian Equities – Resources Sector ($6,158,005)
Australian Equities – Geared ($4,140,653)
Gold ($3,590,110)
Australian Equities – Large Cap ($2,343,606)
International Equities – Geared ($1,555,900)
We believe the industry will continue to grow strongly in 2019 – and forecast total industry FuM at end 2019 to be in the range of $50-55B. Read our 2019 predictions article and stay tuned for our monthly ETF review throughout the year!

 

2 Comments

  1. Jennifer McMillan  |  March 13, 2019

    If I wanted to invest in BetaShares how would I go about it. I usually go through Commsec, is that OK? I also don’t know which shares to buy.

    1. Gavin Montgomery  |  March 27, 2019

      Hi Jennifer,

      Since our ETF’s are listed on the ASX this means they are traded just like any other single stock. Yes, you can access our ETF’s on Commsec.

      If you are stuck with how ETF’s work, there is an education section on our website which may help she some light. If you need help investing, it may be an idea to get in touch with an adviser.

      If you did have any further enquiries, you are welcome to either email us at info@betashares.com.au or call us on 1300 487 577.

      Thanks,
      BetaShares Client Services

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