BetaShares Australian ETF Review - October 2019 | BetaShares

BetaShares Australian ETF Review – October 2019

BY Ilan Israelstam | 13 November 2019
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Australian ETF Industry Review - October 2019

Reading time: 3 minutes

FIXED INCOME FIXATION CONTINUES AS INDUSTRY EXTENDS ITS RAPID RISE

Led once again by flows into Fixed Income ETFs, the Australian ETF industry continued its rapid growth trajectory, ending October at a record $57.2B. The industry has grown by 40% over the last 12 months with absolute growth of $16.4B over this period, the highest level of growth over a 12-month period to date. Read on for more details.

Australian ETP Market Cap: July 2001 – October 2019

CAGR: Compound Annual Growth Rate
Source: ASX, BetaShares

Market cap

  • ASX Exchange Traded Product Market Cap: $57.2B – new industry record
  • Market cap increase for month: 1.8%, +$1.0B
  • Market cap growth for the last 12 months: 40%, + $16.4B – greatest absolute growth over a 12-mth period

Comment: 100% of the month’s growth came from net inflows ($1.2B), with negative market movements creating a drag on industry growth.

New money

  • Unit growth for month (units outstanding by number): +2.8%
  • Net new money for month (units outstanding by % value): +$1.2B 

Products

  • 248 Exchange Traded Products trading on the ASX – two new products launched this month

Trading value

  • Trading value was the second highest volume on record ($5.2B) just below the record $5.3B set in August

Performance

Top 5 category inflows (by $) – October

Category                                                  Inflow Value
Fixed Income $372,094,535
International Equities $368,056,294
Australian Equities $307,372,123
Cash $57,911,451
Commodities $56,770,860

Comment: In a return to the theme that has been present for most of the year, Fixed Income exposures received the highest level of inflows ($372m), followed by International Equities ($368m)

Top category outflows (by $) – October

Category                                                  Outflow Value
Currency ($9,250,800)

Top sub-category inflows (by $) – October

Sub-Category   Inflow Value
Australian Bonds $317,030,752
International Equities – Developed World $204,053,874
Australian Equities – Broad $160,491,882
International Equities – Sector $81,267,496
Australian Equities – High Yield $63,158,115

Top sub-category outflows (by $) – October

Sub-Category   Inflow Value
Australian Equities – Financials Sector ($16,544,812)
Currency ($9,250,800)
International Equities – Europe ($7,365,553)
International Equities – Geared ($1,791,320)

Comment: Monthly net outflows were limited with outflows out of Australian Financial Sector products most likely on profit selling, and continued outflows from European exposures which appear to remain an area of concern for investors.

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