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Share
ETF industry breaks the $30B barrier
The Australian ETF industry once again had a positive month, with net cash inflows taking the industry to a fresh record high as the industry broke $30B for the first time. Total industry FuM at the month end was $30.1B, which is a growth of 2.3% ($725m) for the month. In a month where the Australian sharemarkets were flat, 100% of the growth came from net inflows rather than asset appreciation.
Market Size & Growth
Market Cap
- ASX Exchange Traded Funds Market Cap: $30.1B– new record high
- Market cap growth for year: 2.3%, +$688.4B
New Money
- New unit growth for year (units outstanding by number): 2.1%
- Net new money (units outstanding by $ value): +$724.5B
Products
- 212 Exchange Traded Products trading on the ASX
- New products: 1 new product launched this month and 1 product closed
Trading Value
- Trading value down 11% after previous month’s record
Comment: Even though trading value was down, it’s important to note this was off the back of a record month last month. Overall trading values continue to trend higher.
Performance
- Geared Australian Dollars (via AUDS) and Crude Oil ETF (via OOO) the best performing funds this month
Comments: Investors in more tactical exposures were rewarded in terms of performance this month.
Top 5 category inflows (by $) – July
| Category | Inflow Value | |
| Australian Equities | $ 269,426,594 | |
| International Equities | $ 253,073,542 | |
| Fixed Income | $ 134,281,311 | |
| Cash | $ 79,090,631 | |
| Australian Listed Property | $ 36,778,535 | |
Top category outflows (by $) – July
| Category | Outflow Value | |
| Commodities | ($ 29,646,760) | |
| Currency | ($ 18,181,196) | |
Top sub-category inflows (by $) – July
| Category | Inflow Value | |
| Australian Equities – Broad | $ 197,216,207 | |
| International Equities – Developed World | $ 110,017,101 | |
| Australian Bonds | $ 107,336,491 | |
| Cash | $ 79,090,631 | |
| Australian Equities – High Yield | $ 57,389,872 | |
Top sub-category outflows (by $) – July
| Category | Outflow Value | |
| Gold | ($ 29,847,530) | |
| Currency | ($ 18,181,196) | |
| Australian Equities – Financials Sector | ($ 9,140,290) | |
| Australian Equities – Short | ($ 6,401,725) | |
When are we likely to see a reversal of HVST downslide? Currently it is losing value more than it is paying dividends.
I have 3 portfolios with HVST and even with averaging down and accumulating over the last year and a half I’m still underwater.
Hi David,
Thanks for your note. At present HVST has been affected by a number of market issues that we do not expect to necessarily persist over time. This has included an overweight position to the banks at the time the bank levy was announced, and then an underweight position to the banks at the time the market rallied. In addition it has been long utilities and A-REITS at times when those stocks have been performing poorly. Investors in HVST need to understand that it does not track a benchmark and, as such, it can be expected to both under and overperform the broad market at various times.
We have written a piece of HVST which you may find useful – https://www.betashares.com.au/wp-content/uploads/2017/06/Revisting_HVST_Strategy_final.pdf
If you have any further questions or queries please do not hesitate to contact us on 1300 487 577
please register me for the webinair 24th Aug
Pease register me for the webinair 24th august
Thanks Andrew, you have been added to the list and should receive an email confirmation shortly.
Hi Andrew – apologies for the very slow response to this. IF you haven’t seen the webinar yet you may wish to view it online at https://www.youtube.com/watch?v=MQwQt7W3D5I