BetaShares Australian ETF Review | March 2018 | BetaShares ETFs

BetaShares Australian ETF Review – March 2018

BY Ilan Israelstam | 10 April 2018
Share
Australian ETF Review - March 2018

Positive inflows not enough to stop industry dip 

With both Australian and Global equity markets falling significantly for the second month in a row, continued positive net inflows were not sufficient to stop the industry from declining –ending a 13 month run of positive growth.  Net new money for the industry was positive at $481m, but due to the extent of asset depreciation the industry actually fell in value. Read on for details of the month in ETFs.

Australian ETF Review - March 2018

Market cap

  • ASX Exchange Traded Funds Market Cap: $36.6B 
  • Market cap growth for month: -0.8%, -$288.0m
  • Market cap growth for the last 12 months: 33.6%, +$9.2B

New money

  • New unit growth for month (units outstanding by number): 1.7%
  • Net new money (units outstanding by $ value): +$481.2m

Comment: The second month of market declines put a stop to 13 months of uninterrupted growth in the industry. Actual cash inflows remained positive and were at approximately the same level as last month but the falls caused assets to decline, causing an overall negative result in industry FuM.

 Products

  • 229 Exchange Traded Products trading on the ASX
  • 1 new product launched this month, a Global Ethical ETF by VanEck

Trading value

  • Average trading value down 21% month on month after last month’s near record level

Performance

Comment: The benefit of exchange traded products which allow people to profit from, or protect against market declines has been vividly illustrated over the last 2 months, with trading continuing to be strong in this category.

Top 5 category inflows (by $) – March

Category                                                          Inflow Value
International Equities $ 199,082,405
Australian Equities $ 180,832,997
Fixed Income $ 67,313,502
Cash $ 28,163,566
Multi-Asset $ 18,830,142

Comment: Multi-asset funds seem to be finding a foothold in the market, with ~$20m of inflows being a strong result for a relatively new category.

 Top category outflows (by $) – March

Category                                                          Outflow Value
Currency ($ 20,286,234)
Short ($ 12,480,995)

Top sub-category inflows (by $) – March

Category                                                          Inflow Value
International Equities – Developed World $ 111,378,178
Australian Equities – Resources Sector $ 84,187,455
Australian Bonds $ 60,574,124
Australian Equities – Broad $ 41,135,425
Cash $ 28,163,566

Top sub-category outflows (by $) – March

Category                                                          Outflow Value
Currency ($ 20,286,234)
Australian Equities – Short ($ 8,617,895)
US Equities – Short ($ 3,863,100)
Oil  ($ 2,471,476)