BetaShares Australian ETF Review - February 2021 - BetaShares

BetaShares Australian ETF Review – February 2021

BY Ilan Israelstam | 16 March 2021
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FEBRUARY 2021: FUND FLOWS REMAIN STRONG AS SHAREMARKETS CONTINUE TO RISE

The month of February saw the U.S. and Australian sharemarkets continue their recent strong form, while ETF industry inflows themselves remained solid. The Australian ETF industry continued to grow, and reached yet another new record high of $97.3B at the end of the month. Read on for more details, including best performers, asset flow categories and more.

Australian ETP Market Cap: July 2001 – February 2021

aus etp market cap_February 2021

CAGR: Compound Annual Growth Rate
Source: ASX, Chi-X, BetaShares. 

Market cap

  • ASX Exchange Traded Product market cap: $97.3B1 – all-time end of month high
  • Market cap change for month: +0.6%, +$0.5B
  • Market cap growth for the last 12 months: +52%, + $33.3B

Comment: The industry’s market cap grew by a relatively subdued 0.5% for the month to reach a new record high of $97.3B. Industry growth over the last 12 months has been 52%, representing absolute growth of $33B over this period. 

1. Includes total FuM for ETFs trading on both ASX and Chi-X

New money

  • Net new money for month (units outstanding by % value): +$1.5B

Products

  • 258 Exchange Traded Products trading on the ASX and Chi-X with no new product launches or closures.

Comment: Two new products launched including BetaShares Cloud Computing ETF (ASX: CLDD) and a new global equities Active ETF by Apostle.

Trading value

  • ASX ETF trading value up ~45% vs. the previous month.

Comment: With volatility back in February, we saw a significant rise in trading value, which grew 45% month on month.

Performance

  • This month from a performance perspective, we saw a distinct cyclical shift towards value-oriented exposures, along with strong gains in commodity linked products. Our Crude Oil ETF was the best performer gaining 17.9% for the month, this was followed by our Global Banks and Global Energy Companies exposures.

Top 5 category inflows (by $) – February 2021

Category Inflow Value
International Equities $829,019,934
Fixed Income $259,047,204
Australian Equities $169,721,554
Multi-Asset $114,387,359
Australian Listed Property $65,939,351

Comment: International equities once again led the way for inflows ($830m of net flows). Bonds, with Australian bonds in particular, were the second biggest category, albeit a significantly smaller levels than equities ($260m of flows).

Top 5 category outflows (by $) – February 2021

Category Outflow Value
Currency ($8,772,760)

Australian ETF Flows by Asset Class - Rolling 12 Month February 2021

Source: Bloomberg, BetaShares.

Australian ETF Flows by Asset Class - Last 4 Months - Feb 2021

Source: Bloomberg, BetaShares.

Top sub-category inflows (by $) – February 2021

Sub-Category Inflow Value
International Equities – Developed World $317,752,722
International Equities – Sector $238,485,736
Australian Bonds $185,780,998
International Equities – Asia $128,620,232
>Multi-Asset $114,387,359

Top sub-category outflows (by $) – February 2021

Sub-Category Outflow Value
Gold ($16,321,896)
Australian Equities – Geared ($15,821,952)
Oil ($15,007,916)
Currency ($8,772,760)
International Equities – Geared ($5,274,375)

Comment: Outflows from commodities products included profit taking by investors in oil exposures.

Spotlight on ethical investing

Aus Ethical ETF FUM - Last 4 Years - Feb 2021

This month we highlight the tremendous growth in ethical and sustainable ETFs, which is one of the fastest growing segments of the industry. Over the last two years to February 2021, we’ve seen more than 200% growth in this segment and there are now 18 ethical/sustainable products available and approx. $3B in assets. The flows and FuM are however very concentrated to the BetaShares range of ethical funds which represents some 75% of funds under management in this space.

2 Comments

  1. Khurshed  |  March 24, 2021

    Do you have an ETF for Australian Banks?

    1. BetaShares Client Services  |  March 25, 2021

      Hi Khurshed,

      BetaShares Australian Financial Sector ETF (QFN) aims to track the performance of an index (before fees and expenses) comprising the largest ASX-listed companies in the financial sector, including the ‘Big 4’ banks and insurance companies but excluding Real Estate Investment Trusts.

      Hope this helps.

      Sincerely,
      BetaShares Client Services

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