BetaShares Australian ETF Review: January 2022 | BetaShares

BetaShares Australian ETF Review: January 2022

BY Ilan Israelstam | 16 February 2022
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Australian ETF Review: January 2022

Reading time: 3 minutes

JANUARY 2022: INDUSTRY DROPS IN VALUE AS MARKET FALLS, WHILE FLOWS REMAIN POSITIVE

With global and Australian sharemarkets falling steeply in the first month of 2022, positive inflows were not enough to combat a drop in asset values, which led to a negative start for the Australian ETF industry. Read on for details, including best performers, asset flow categories and more.

Australian ETP Market Cap: July 2001 – January 2022

aus etp market cap_January 2022

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

Market cap

  • ASX Exchange Traded Product market cap: $131.8B1
  • Market cap change for month: -3.74%, -$5.1B
  • Market cap growth for the last 12 months: 36.2%, + $35.1B

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

Comment: Notwithstanding asset declines, net flows remained positive, with $1.5B of flows for the month.

Products

  • 282 Exchange Traded Products trading on the ASX and Chi-X.
  • 2 new products launched – both Active ETFs from Fat Prophets and a Munro ESG oriented product.

Comment: Two new Active ETFs were launched in January, and we expect Active ETF launches to remain frequent throughout the year. This month we saw Fat Prophets and Munro enter the industry.

Trading value

  • Monthly trading value increased by 26% with the ASX ETF trading value reaching its second highest monthly level on record ($10.3B).

Comment: Notably given the volatility, monthly trading value increased by 26% with ASX ETF trading value reaching its second highest monthly level on record ($10.3B). As the industry has matured, we have increasingly seen very strong trading values in periods of increased market volatility, with investors benefiting from the liquidity of ETFs to express market views.

Performance

  • Best performance in January was from physical palladium, geared short products and the Crude Oil ETF, which rallied ~18% for the month.

Australian ETF Flows by Asset Class - Rolling 12 Month January 2022

Top 5 category inflows (by $) – January 2022

Category Inflow Value
International Equities $641,786,267
Australian Equities $410,455,809
Cash $207,781,215
Fixed Income $116,778,427
Multi-Asset $114,408,759

Comment: The year started as it finished with the bulk of flows into international equities ($641m), followed by Australian equities ($410m). We saw increased flows into the Cash ETF with investors seemingly becoming more bearish on market prospects. 

Top 5 category outflows (by $) – January 2022

Category Inflow Value
Short ($12,482,618)

Comment: Outflows were limited to short products as investors took profits as markets fell.

Source: Bloomberg, BetaShares.

Top sub-category inflows (by $) – January 2022

Sub-Category Inflow Value
International Equities – Developed World $286,290,185
Australian Equities – Broad $255,339,976
Cash $207,781,215
Multi-Asset $114,408,759
International Equities – Sector $85,943,688

Top sub-category outflows (by $) – January 2022

Sub-Category Outflow Value
Australian Equities – Short ($20,487,375)
Oil ($17,379,168)
Australian Equities – Sector ($16,003,477)
Other ($1,108,1133)

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