BetaShares Australian ETF Review: November 2021 | BetaShares

BetaShares Australian ETF Review: November 2021

BY Ilan Israelstam | 14 December 2021
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Australian ETF Review: November 2021

Reading time: 3 minutes

NOVEMBER 2021: RAPID GROWTH IN THE INDUSTRY AS SHAREMARKETS BOUNCE

With both Australian and global sharemarkets performing strongly in November, the ETF industry grew rapidly reaching an all-time high of $132.8B. Read on for details, including best performers, asset flow categories and more.

Australian ETP Market Cap: August 2001 – November 2021

aus etp market cap_November 2021

CAGR: Compound Annual Growth Rate
Source: ASX, Chi-X, BetaShares. 

Market cap

  • ASX Exchange Traded Product market cap: $132.8B1 – all time end-of-month high
  • Market cap change for month: +4.62%, $5.9B
  • Market cap growth for the last 12 months: 43.9%, + $40.5B

Comment: The industry ended November at a fresh all-time high of $132.8B total market cap, with total industry growth of $5.9B for the month. Industry growth over the last 12 months has been 43.9%, for a total of $40.5B net growth over this period. 

1. Includes total FuM for ETFs trading on both ASX and Chi-X

New money

  • Net new money for month (units outstanding by $ value): +$1.9B

Comment: Net flows contributed 30% of the month’s growth, with the majority of growth coming from asset value appreciation. In total, net inflows added $1.9B to the industry while total industry growth was $5.9B.

Products

  • 277 Exchange Traded Products trading on the ASX and Chi-X.

Comment: We saw a number of new products enter the market in November, with 6 new funds launched including new products from 3 active managers (Perpetual, Daintree and Talaria) as well as our record-breaking Crypto Innovators ETF (ASX: CRYP), which broke records for first day trading value, as well as fastest product to reach $100M in assets1

1. Excluding conversions and seeding activity

Trading value

  • Monthly trading value increased by 14% with the ASX ETF trading value reaching its second highest monthly level on record ($9.7B).

Performance

  • Best performance in November came from Semiconductor exposures, China and also the Geared US Dollar Fund which rallied ~12.5%.

Australian ETF Flows by Asset Class - Rolling 12 Month November 2021

Top 5 category inflows (by $) – November 2021

Category Inflow Value
International Equities $1,157,094,924
Australian Equities $665,233,132
Fixed Income $298,816,587
Multi-Asset $122,433,404
Commodities $70,479,465

Comment: Flows this month were heavily concentrated in international equities which contributed over 60% of the month’s flows ($1.2B), followed by Australian equities ($665m) and fixed income ($299m).

Top 5 category outflows (by $) – November 2021

Category Inflow Value
Cash ($420,737,845)
Currency ($2,167,927)

Comment: Outflows came primarily from Cash products with investors seemingly rotating back into equities and away from cash given the continuing low interest yields available via cash deposits.
Australian ETF Flows by Asset Class - Last 4 Months - November 2021

Source: Bloomberg, BetaShares.

Top sub-category inflows (by $) – November 2021

Sub-Category Inflow Value
Australian Equities – Broad $534,000,769
International Equities – Developed World $411,301,146
International Equities – Sector $326,413,369
Australian Bonds $257,995,875
International Equities – U.S. $216,046,408

Top sub-category outflows (by $) – November 2021

Sub-Category Outflow Value
Cash ($420,737,845)
International Equities – Emerging Markets ($31,405,891)
International Equities – Asia ($11,020,378)
Oil ($8,364,663)
Australian Equities – Short ($5,687,746)

1 Comment

  1. Geoffrey Ong  |  December 18, 2021

    Interesting and useful review

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