BetaShares Australian ETF Review - November 2019 | BetaShares

BetaShares Australian ETF Review – November 2019

BY Ilan Israelstam | 18 December 2019
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Reading time: 3 minutes

INDUSTRY BLASTS THROUGH THE $60B BARRIER

I know, I know, you are all getting tired of me saying this, but facts are facts, it was a truly momentous month of growth in the Australian ETF industry in November! The industry broke through the $60B barrier, breaking numerous records along the way, including all-time high assets under management, largest absolute monthly growth on record and largest absolute growth over a 12-month period. Read on for more details.

Australian ETP Market Cap: July 2001 – November 2019

AUSTRALIAN ETP MARKET CAP: JULY 2001 – NOVEMBER 2019

CAGR: Compound Annual Growth Rate
Source: ASX, BetaShares

Market cap

  • ASX Exchange Traded Product Market Cap: $60.7B – new industry record
  • Market cap increase for month: 6.1%, +$3.5B – Largest absolute monthly growth on record, fastest % monthly growth in >4 years
  • Market cap growth for the last 12 months: 48%, + $19.6B – Greatest absolute growth over 12-mth period

Comment: The industry broke through the $60B barrier, breaking numerous records along the way. Industry growth over the last 12 months was 48%, with absolute growth of $19.6B over this period, the highest level of growth over a 12-month period to date. The monthly growth figure in assets under management ($3.5B) was also a record.

New money

  • Unit growth for month (units outstanding by number): +3.3%
  • Net new money for month (units outstanding by % value): +$1.7B 

Comment: Just under 50% of the month’s growth came from net inflows ($1.7B), with strong equities performance contributing the remaining $1.8B of the industry’s growth.

Products

Trading value

  • ASX ETF trading value decreased 5% after last month’s significant trading but still remained high relative to previous months at approx. $5B.

Performance

Top 5 category inflows (by $) – November

Category                                                  Inflow Value
Australian Equities $753,918,605
International Equities $538,878,982
Fixed Income $306,097,641
Australian Listed Property $71,436,743
Commodities $68,476,857

Comment: In a notable departure from the rest of the year, the largest two categories for inflows this month were Australian and International Equities, which took in ~$1.2B between them. Fixed Income flows, which have been very strong throughout 2019, while positive, took a bit of a breather as investor sentiment appeared to improve on the equities markets, which performed strongly.

Top category outflows (by $) – November

Category   Outflow Value
Cash ($53,250,641)
Currency ($13,450,885)

Top sub-category inflows (by $) – November

Sub-Category   Inflow Value
Australian Equities –  Broad $516,185,929
International Equities – Developed World $285,289,991
Australian Bonds $225,827,319
Global Bonds $80,270,323
Australian Equities – High Yield $76,253,412

Top sub-category outflows (by $) – November

Sub-Category   Inflow Value
Cash ($53,250,641)
Currency ($13,450,885)

Comment: Monthly net outflows were limited, with outflows out of Australian cash, and US Dollar exposures which have been subject to profit-selling over a great deal of the year to date.

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