BetaShares Australian ETF Review: February 2022 | BetaShares

BetaShares Australian ETF Review: February 2022

BY Ilan Israelstam | 16 March 2022
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FEBRUARY 2022: INDUSTRY FALLS FOR THE SECOND MONTH IN A ROW

A combination of falling global sharemarkets and anaemic flows caused the Australian ETF industry to fall for a second month in a row. Read on for details, including best performers, asset flow categories and more.

Australian ETP Market Cap: July 2001 – February 2022

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

Market cap

  • ASX Exchange Traded Product market cap: $130.1B
  • Market cap change for month: -1.32%, -$1.7B
  • Market cap growth for the last 12 months: 33.7%, + $32.8B

New money

  • Net flows for month: +$0.2B – lowest net flows in 5 years

Comment: Australian ETF investors were cautious this month given geopolitical conflict, inflation fears and volatile markets, resulting in net flows of only $212m for the month.

Products

Trading value

  • ASX ETF trading value remained stable (-1% month-on-month) to reach the third-highest value traded on record ($10.2B).

Performance

  • Best performance in February came from gold mining and oil exposures. Our currency-hedged Global Gold Miners ETF (MNRS) topped the table with an 11.8% monthly return.

Comment:  Industry growth over the last 12 months has been 34%, for a total of $32.8B net growth.

Top 5 Category inflows (by $) – February 2022

Category Inflow Value
Australian Equities $380,963,346
Fixed Income $126,884,838
Multi-Asset $103,009,763
Listed Property $44,145,670
Short $40,612,500

Top 5 Category outflows (by $) – February 2022

Category Inflow Value
Cash ($283,619,288)
International Equities ($229,500,009)

 

Source: Bloomberg, BetaShares.

Top Sub-Category inflows (by $) – February 2022

Sub-Category Inflow Value
Australian Equities – Broad $318,202,334
Multi-Asset $103,009,763
Australian Bonds $85,556,044
International Equities – Ethical $83,191,000
International Equities – Europe $49,977,618

Comment: Net inflows were recorded in Australian Equities products (~$318m), which outperformed International Equities significantly in February. Notably we also saw net inflows in Ethical Global Equities products which remain a very fast growing category in the Australian ETF landscape.

Top Sub-Category outflows (by $) – February 2022

Sub-Category Outflow Value
International Equities – Developed World ($294,996,064)
Cash ($283,619,288)
International Equities – US ($98,389,948)
International Equities – Sector ($39,534,715)
Australian Equities – Geared ($9,464,675)

Comment: For the first time in the industry’s history, we saw the International Equities category in net outflow – this was driven in large part by significant flows out of the Magellan Global Fund (~$700m outflow).

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