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.
- 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 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.
- 229 Exchange Traded Products trading on the ASX
- 1 new product launched this month, a Global Ethical ETF by VanEck
- Average trading value down 21% month on month after last month’s near record level
- For the second month in a row, strong performance was recorded by the BetaShares Strong Bear Funds, with BBOZ (Australian Equities Strong Bear Hedge Fund) and BBUS (U.S. Equities Strong Bear Hedge Fund) performing best, followed by OOO (Crude Oil ETF)
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 $) – March
|International Equities||$ 199,082,405|
|Australian Equities||$ 180,832,997|
|Fixed Income||$ 67,313,502|
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
Top sub-category inflows (by $) – March
|International Equities – Developed World||$ 111,378,178|
|Australian Equities – Resources Sector||$ 84,187,455|
|Australian Bonds||$ 60,574,124|
|Australian Equities – Broad||$ 41,135,425|
Top sub-category outflows (by $) – March
|Australian Equities – Short||($ 8,617,895)|
|US Equities – Short||($ 3,863,100)|