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!

 

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