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ALL-TIME NET FLOW RECORD BROKEN ONCE AGAIN AS INDUSTRY HITS NEW HIGHS
For the second month in a row, the Australian ETF industry broke its all-time net flows record, receiving $2.3B of net flows. This is now the second month ever with net flows >$2B, with a figure of $2.1B recorded just a month before. Read on for more details, including best performers, asset flow categories and more.
Australian ETP Market Cap: July 2001 – October 2020
Source: ASX, Chi-X, BetaShares
Market cap
- ASX Exchange Traded Product Market Cap: $73.8B1 – all time end of month high
- Market cap change for month: +3.3%, +$2.4B
- Market cap growth for the last 12 months: +29%, + $16.5B
Comment: The high level of flows pushed the industry to $73.8B, another fresh record high. Industry growth over the last 12 months has been 29%, representing absolute growth of $16.5B 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): +$2.3B – largest net inflows on record, breaking previous record ($2.1B) recorded last month
Comment: With global sharemarkets receiving mixed results (Asia and Australia rallying but US markets falling), ETF industry growth was almost entirely made up of net new money which totalled $2.3B out of the $2.4B of total industry growth.
Products
- 256 Exchange Traded Products trading on the ASX and Chi-X with 10 new products launching this month, 8 new single bond products, one Australian ESG exposure and a new Australian equities Active ETF from Intelligent Investor.
Trading value
- ASX ETF Trading value down ~10% vs. the previous month, but remains at approx. $7B value traded for the month.
Comment: Trading value remained strong with ~$7.B traded on the ASX, although this figure represented an ~10% fall month on month.
Performance
- With markets rising in October we once again saw our Asia Technology Tigers fund as the best performer with ~8% for the month and >50% return YTD. Strong performance also came from Australian Financials ETFs.
Top 5 category inflows (by $) – October 2020
| Category | Inflow Value | |
| International Equities | $836,454,148 | |
| Australian Equities | $742,587,151 | |
| Fixed Income | $480,343,780 | |
| Cash | $86,315,845 | |
| Multi-Asset | $68,894,695 | |
Comment: Equities exposures once again dominated net flows this month, as has been the case for most of the year, with relatively even flows recorded as between international equities ($836m) and Australian equities ($724m). While it was a distant 3rd place, it was interesting to see bond products return to decent flows ($480m) with both global and Australian aggregate/composite bond products growing well.
Top category outflows (by $) – October 2020
| Category | Outflow Value | |
| Currency | ($6,411,904) |
Comment: Outflows were limited this month, with only very small net outflows in geared Australian equities as investors took profits, as well as US dollar exposures.
Source: Bloomberg, BetaShares.
Source: Bloomberg, BetaShares.
Top sub-category inflows (by $) – October 2020
| Sub-Category | Inflow Value | |
| Australian Equities – Broad | $676,320,727 | |
| Australian Bonds | $329,809,366 | |
| International Equities – Developed World | $283,061,854 | |
| International Equities – Sector | $189,674,442 | |
| International Equities – US | $162,353,821 | |
Top sub-category outflows (by $) – October 2020
| Category | Outflow Value | |
| Australian Equities – Geared | ($7,061,618) | |
| Currency | ($6,411,904) | |
| Australian Equities – Sector | ($2,631,803) | |