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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
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
- 254 Exchange Traded Products trading on the ASX and Chi-X – 8 new products launched this month in what was a very big month for product launches. We launched the first ETF on ASX to specifically allocate to Green Bonds, with our BetaShares Sustainability Leaders Diversified Bond ETF – Currency Hedged (ASX: GBND).
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 performance for the month was via Biotech equities exposures, followed by Global Cybersecurity (HACK) and Geared Equities products (GGUS, GEAR).
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.