BetaShares Australian ETF Review - October 2020 | BetaShares

BetaShares Australian ETF Review – October 2020

BY Ilan Israelstam | 11 November 2020
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Australian ETF Review: October 2020

Reading time: 3 minutes

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

aus etp market cap_October 2020

CAGR: Compound Annual Growth Rate
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

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.

Australian ETF Flows by Asset Class - Rolling 12 Month October 2020

Source: Bloomberg, BetaShares.

Australian ETF Flows by Asset Class - Last 4 Months October 2020

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)

 

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