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AUSSIE! AUSSIE! AUSSIE!

• The Australian ETF industry finished the first quarter strongly, recording 13% growth for the quarter to reach a fresh high
• The industry ended March at a record $46.1B, with its market cap increasing by 2.9% (+$1.3B) over the month
• Trading activity was also very strong, with the monthly trading level of $3.6B being the second highest on record (October 2018, or “Shock-tober”, remains the month with the highest trading level at $3.9B)
• The majority of the industry’s growth this month (60%) came from net new money of ~$760m, with the remainder coming from continued asset value appreciation as markets rallied
• No new products were launched this month, in what has been one of the quietest quarters for some time in terms of product development.
• In stark contrast to virtually every month in the past few years it was Australian exposures which received the highest level of investment this month, with Australian broad market equities and Australian fixed income receiving strong interest (~$400m in net inflows between them) – investors may potentially feel that the tremendous rally we have seen in global shares may be coming to an end, and therefore are re-orienting back to Australian markets
• For the second month in a row, it was Chinese exposures that performed the strongest, followed by Australian Listed Property products
• Net outflows at a category level were once again limited. European equities products saw the largest amount of outflows as investors appeared to be concerned over the prospects of that region’s sharemarkets.

Top category outflows (by $) – March 2019

Top sub-category inflows (by $) – March 2019

Top sub-category outflows (by $) – March 2019