BetaShares Australian ETF Review - July 2020 | BetaShares

BetaShares Australian ETF Review – July 2020

BY Ilan Israelstam | 19 August 2020
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Australian ETF Review - July 2020

Reading time: 3 minutes

INDUSTRY SNAPS BACK TO ALL-TIME HIGHS AS TOP TWO ISSUERS EXTEND THEIR LEAD 

In a mirror-image of global stockmarkets, the Australian ETF industry has regained its previous peak some 6 months since market volatility began in earnest back in February. The Australian ETF industry closed the month of July at $67.2B, an all-time end of month high, eclipsing the previous record from January of $66B. Read on for more details.

Australian ETP Market Cap: July 2001 – July 2020

Aus ETP Market Cap - July 2020

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

Market cap

  • ASX Exchange Traded Product Market Cap: $67.2B1 – all time end-of-month high
  • Market cap change for month: +2.0%, +$1.3B
  • Market cap growth for the last 12 months: +26%, + $13.8B

Comment: Market cap closed at an all time end-of-month high at $67.2B. Industry FuM grew by $1.3B (a 2.0% month-on-month increase) with industry growth over the last 12 months of 26%, representing absolute growth of $13.8B over this period.

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

New money

  • Net new money for month (units outstanding by % value): +$1.2B 

Comment: With global sharemarkets flat during the month, essentially all of the industry growth this month came from net new money (as opposed to market movements) which totalled $1.2B.

Products

Trading value

  • ASX ETF trading value remained relatively high, albeit dropping back on recent record months. Total value traded was $6.6B, which was ~20% less than previous month’s value.

Performance

  • Best performance this month came from precious metals, particularly gold and silver, along with gold miners. Given the accompanying rise in the AUD, performance in these exposures was best in currency hedged form via MNRS (Gold Miners, +18.6%) and QAU (Gold Bullion, +11.1%).

Top 5 category inflows (by $) – July 2020

Category   Inflow Value
International Equities $547,081,145
Fixed Income  $306,890,280
Commodities $202,053,534
Cash $151,469,470
Short $95,477,350

Top category outflows (by $) – July 2020

Category   Outflow Value
Australian Equities                                                               ($192,848,419)

Top sub-category inflows (by $) – July 2020

Sub-Category   Inflow Value
Australian Bonds $240,703,838
Gold $202,412,522
International Equities – Sector $168,091,458
International Equities – Developed World $164,335,717
Cash $151,469,470

Top sub-category outflows (by $) – July 2020

Category   Outflow Value
Australian Equities – Broad ($246,893,703)
Oil ($21,311,402)
Australian Equities – High Yield                          ($12,972,370)
Australian Equities – Geared ($8,325,536)
International Equities – Geared ($7,066,191)

Comment: While the start of the year saw the highest level of flows into Australian Equities exposures, this month was notable for having net outflows in this category (-$192m). Instead, we saw a return to more defensive allocations – with Australian Bonds and Gold receiving the highest amount of net flows at a sub-category level. To the extent money went into equities, this was particularly in the technology sector. It was also notable that we saw two ethical ETFs in the top 10 products for flows this month, with ETHI and FAIR receiving ~$140m in flows between them.

ETF issuer flows

  • With 7 months of the year completed, this month we examine ETF issuer flows which, for the year to date, have become highly concentrated to the top two issuers. Combined, the #1 issuer (BetaShares) and #2 issuer (Vanguard) have received >60% of all industry flows, with both receiving >3x the flows of their closest competitor. Notably, BetaShares had 9 of the top 10 products for net inflows this month and, at $730m in monthly flows, has, for the second month in a row, broken the all-time monthly net flow record in the industry.

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