BetaShares Australian ETF Review | May 2018 | BetaShares ETFs

BetaShares Australian ETF Review – May 2018

BY Ilan Israelstam | 13 June 2018
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Australian ETF Review - May 2018

Industry crosses $38B mark

The Australian ETF industry continued to grow last month, reaching a record high of $38.4B. The Industry grew 1.4% in the month ($534m),  the vast majority (~90%) of which came from new inflows, rather than asset appreciation. Read on for details of the month in ETFs.

Market cap

  • ASX Exchange Traded Funds Market Cap: $$38.4B – New Record High
  • Market cap growth for month: +1.4%, $534m
  • Market cap growth for the last 12 months: 32%, +$9.4B

New money

  • New unit growth for month (units outstanding by number): 1.1%
  • Net new money (units outstanding by $ value): +$475m

Comment: The industry grew 1.4% in the month ($534m), the vast majority (~90%) of which came from new inflows, rather than asset appreciation.

 Products

  • 234 Exchange Traded Products trading on the ASX
  • 2 new products launched this month, including BetaShares Australia 200 ETF (ASX: A200), the world’s lowest cost Australian shares ETF* and a new income oriented Active ETF

*Source: Bloomberg, based on expense ratios of Australian shares ETFs traded in Australia or on overseas exchanges

Trading value

  • Average trading value up 10% month on month

Performance

  • Best performing ETFs were U.S. equities products, particularly those providing exposure to small cap US stocks

Top 5 category inflows (by $) – May

Category                                                          Inflow Value
International Equities $ 273,498,944
Cash $ 110,407,093
Fixed Income $ 64,970,239
Short $ 20,278,280
Multi-Asset $ 18,633,088

Comment: As has been the case for each month this year so far, international equities continued to be the largest category for inflows, with Cash & Fixed Income #2 and #3 category exposures respectively. Australian shares exposures received outflows

Top category outflows (by $) – May

Category                                                          Inflow Value
Currency ($26,129,800)
Australian Listed Property ($9,442,996)

Top sub-category inflows (by $) – May

Category                                                          Inflow Value
International Equities – Developed World $ 112,896,339
Cash $ 110,407,093
International Equities – Asia $ 87,358,421
Australian Bonds $ 63,789,780
International Equities – Sector $ 51,638,981

Top sub-category Outflows (by $) – May

Category                                                          Inflow Value
Australian Equities – Resources Sector $ 60,051,170
Currency $ 26,129,800
Australian Listed Property $ 9,442,996
Australian Equities – Geared $ 9,284,475
Australian Equities – Large Cap $ 7,346,598