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OCTOBER 2021: FLOWS ROBUST AS AUSTRALIAN SHAREMARKET STAYS FLAT
October saw the Australian sharemarket take a breather, remaining flat, but this did not dissuade ETF investors from continuing to allocate to domestic equities in a month with continued strong net flows. Read on for details, including best performers, asset flow categories and more.
Australian ETP Market Cap: August 2001 – October 2021
Source: ASX, Chi-X, BetaShares.
Market cap
- ASX Exchange Traded Product market cap: $126.9B1 – all time end-of-month high
- Market cap change for month: +1.33%, $1.7B
- Market cap growth for the last 12 months: 72.1%, + $53.2B
Comment: The industry ended October at a fresh all-time high of $126.9B total market cap, with total industry growth of $1.7B for the month. Industry growth over the last 12 months has been 72.1%, for a total of $53.2B 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): +$2.4B
Comment: Net flows into the industry were $2.4B, which more than offset asset value declines.
Products
- 272 Exchange Traded Products trading on the ASX and Chi-X.
Comment: Product development activity remained strong, with four new funds launched, including a new Active ETF by Global Equities manager Loomis Sayles.
Trading value
- ASX ETF trading value decreased ~12% after a very big month of trading in September.
Comment: Monthly trading value decreased by 12% after a very significant spike in trading in September – it remains high (>$8B) relative to averages.
Performance
- Best performance this month came from hydrogen exposures, followed by Geared U.S. Equities products (GGUS +15.0%) as the U.S. market reached record levels.
Top 5 category inflows (by $) – October 2021
| Category | Inflow Value |
| International Equities | $904,434,255 |
| Australian Equities | $621,190,396 |
| Cash | $345,155,349 |
| Fixed Income | $304,688,631 |
| Multi-Asset | $157,473,744 |
Comment: Just like last month, we saw continued high levels of flows into both Australian and International equities, although once again international equities dominated ($621m and $904m respectively). For the second month in a row, we saw high levels of flows into Cash ETFs and Fixed Income ETFs ($345m and $304m respectively) with the AAA Cash ETF receiving the highest amount of flows in the industry this month.
Top 5 category outflows (by $) – October 2021
| Category | Inflow Value |
| Currency | ($5,522,156) |
Source: Bloomberg, BetaShares.
Top sub-category inflows (by $) – October 2021
| Sub-Category | Inflow Value |
| Australian Equities – Broad | $528,445,465 |
| International Equities – Developed World | $350,571,262 |
| Cash | $345,155,349 |
| Australian Bonds | $267,761,004 |
| International Equities – U.S. | $197,131,969 |
Top sub-category outflows (by $) – October 2021
| Sub-Category | Outflow Value |
| Oil | ($36,256,998) |
| Australian Equities – Geared | ($7,853,599) |
| Australian Equities – Sector | ($6,462,475) |
| Currency | ($5,522,156) |