BetaShares Australian ETF Review - July 2021 - BetaShares

BetaShares Australian ETF Review – July 2021

BY Ilan Israelstam | 18 August 2021
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Australian ETF Review: July 2021

Reading time: 3 minutes

JULY 2021: INDUSTRY INFLOW RECORD BROKEN – $2.8B FOR THE MONTH

The Australian ETF industry broke its all-time record for inflows, receiving $2.8B and accounting for virtually all the growth in the industry this month. Read on for more details, including best performers, asset flow categories and more.

Australian ETP Market Cap: August 2001 – July 2021

aus etp market cap - July 2021

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

Market cap

  • ASX Exchange Traded Product market cap: $118.8B1 – all time end-of-month high
  • Market cap change for month: 2.6%, $3.1B
  • Market cap growth for the last 12 months: 76.9%, + $51.6B – fastest yearly growth ($ terms) on record

Comment: The industry ended July 2021 at a fresh all-time high of $118.8B total market cap, growing by ~2.6% month on month (+$3.1B). Industry growth over the last 12 months has been 77%, representing absolute growth of $51.6B over this period – the highest $ value increase over 12 months in the industry’s history. 

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

New money

  • Net new money for month (units outstanding by $ value): +$2.8B – all time high (previous record $2.7B in December 2020)

Comment: The inflows beat the previous record of $2.7B set in December 2020, and represented almost all (90%) of the industry’s growth this month with the remaining 10% coming from asset value appreciation.

Products

  • 267 Exchange Traded Products trading on the ASX and Chi-X.

Comment: No new funds launched this month, 1 fund closed (Cash ETF from eInvest).

Trading value

  • ASX ETF trading value increased ~17% vs. the previous month >$8B traded for the month.

Comment: Monthly trading value remained high, increasing 17% month on month, with over $8B of trading activity recorded on the ASX for the month.

Performance

Top 5 category inflows (by $) – July 2021

Category Inflow Value
International Equities $1,626,538,547
Australian Equities $436,048,298
Fixed Income $304,128,617
Multi-Asset $204,241,800
Listed Property $98,919,075

Comment: International equities products continued to drive the majority of industry growth with over $1.6B of assets flowing into this category representing ~4x the amount of flows into the next biggest category (Australian equities).

Top 5 category outflows (by $) – July 2021

Category Inflow Value
Cash ($5,434,490)

Australian ETF Flows by Asset Class - Last 4 Months - July 2021
Source: Bloomberg, BetaShares.

Top sub-category inflows (by $) – July 2021

Sub-Category Inflow Value
International Equities – Developed World $584,902,475
International Equities – Broad $398,004,287
International Equities – US $370,333,810
International Equities – Sector $299,856,944
Australian Bonds $216,850,433

Top sub-category outflows (by $) – July 2021

Sub-Category Outflow Value
Australian Equities – Sector ($27,458,530)
Australian Equities – Geared ($6,526,260)
Cash ($5,434,490)
Australian Equities – Large Cap ($2,925,564)

Comment: With 7 months of the year completed, ETF issuer flows are extremely concentrated with the two (out of 31) largest issuers for flows this year (Vanguard and BetaShares) representing 65% of total industry flows..

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