BetaShares Australian ETF Review - July 2019 | BetaShares

BetaShares Australian ETF Review – July 2019

BY Ilan Israelstam | 14 August 2019
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Reading time: 4 minutes

MULTIPLE RECORDS TUMBLE AS THE SECOND HALF OF THE YEAR STARTS WITH A BANG!

The Australian ETF industry experienced rapid, and record-breaking growth this month, benefiting from both high net flows and positive market movements. July 2019 was truly a month where records tumbled, with all-time records broken for: total funds under management, monthly FuM growth, annual FuM growth, monthly net flows and value of monthly trading. The industry ended July at a record $53.3B with a rapid monthly market cap increase of 4.7% (+$2.4B). Read on for more details.

 

Australian ETP Market Cap: July 2001 – July 2019

CAGR: Compound Annual Growth Rate
Source: ASX, BetaShares

 

Market cap

  • ASX Exchange Traded Product Market Cap: $53.3B – New industry record
  • Market cap increase for month: 4.7%, +$2.40B – New industry record for monthly FuM growth
  • Market cap growth for last 12 months: 33%, + $13.3B – New industry record 12 month FuM growth

 

New money

  • Unit growth for month (units outstanding by number): +2.9%
  • Net new money for month (units outstanding by % value): +$1.48B – New industry record monthly net

Comments: Approximately 60% of the month’s growth came from net inflows, which reached an all-time record of $1.48B (the previous record was set in November of 2017 and amounted to $1.3B)

Products

 

Trading value

  • Trading value increased significantly (20%) to reach an all-time high in monthly trading ($4.7B).

 

Performance

Comments: With escalating of tensions in the China-USA Trade wars, precious metal exposures performed best this month.

 

Top 5 category inflows (by $) – YTD

Category                                                  Inflow Value
International Equities $432,472,084
Fixed Income $404,978,843
Australian Equities $248,386,872
Cash $210,587,393
Commodities $74,379,130

Comment: In terms of category demand, it was International Shares and Australian Bonds that led the way, both receiving over $400m of net inflows. At a product level, BetaShares Australian High Interest Cash ETF (ASX: AAA) and BetaShares Australia 200 ETF (ASX: A200) were the #1 and #2 products for net inflows this month – with ~$169m and ~$155m of new money added respectively

 

Top category outflows (by $) – YTD

Category                                                  Outflow Value
Currency ($16,827,534)

Comment: Net outflows at a category and sub-category level were largely limited to selling in U.S. dollar ETFs, as the Australian dollar depreciated in value.

 

Top sub-category inflows (by $) – YTD

Sub-Category   Inflow Value
Australian Bonds $362,047,460
International Equities – Developed World $219,469,391
Cash $210,587,393
Australian Equities – Broad $ 171,067,977
International Equities – Sector $103,406,140

 

Top sub-category outflows (by $) – YTD

Sub-Category                                                 Outflow Value
Currency ($16,827,534)
Australian Equities – Geared ($4,557,773)
Australian Equities – Financials Sector ($4,496,141)
International Equities – Geared ($3,696,460)
Australian Equities – Large Cap ($2,817,048)

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