BetaShares Australian ETF Review: October 2021 - BetaShares

BetaShares Australian ETF Review: October 2021

BY Ilan Israelstam | 10 November 2021
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Australian ETF Review: October 2021

Reading time: 3 minutes

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

aus etp market cap_October 2021

CAGR: Compound Annual Growth Rate
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.

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

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)

Australian ETF Flows by Asset Class - Last 4 Months - October 2021

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)

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