BetaShares Australian ETF Review: September 2021 - BetaShares

BetaShares Australian ETF Review: September 2021

BY Ilan Israelstam | 20 October 2021
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Australian ETF Review: September 2021

Reading time: 3 minutes

SEPTEMBER 2021: ETF INVESTORS ‘BUY THE DIP’ WITH HIGHEST NET INFLOWS ON RECORD

In a month where both global and Australian equities fell, ETF investors ‘bought the dip’ leading to the highest monthly net inflows on record for the industry ($2.9B). This inflow level broke the previous record set in July ($2.7B) and illustrates the increasing adoption of ETFs by investors in both rising and falling markets. September also saw a fresh record in terms of monthly net inflows by issuer, with BetaShares recording an all-time monthly record for the industry of $1.14B (beating the previous record, held by Vanguard, of $1.05B). Read on for more details, including best performers, asset flow categories and more.

Australian ETP Market Cap: August 2001 – September 2021

Aus ETP market cap - September 2021

CAGR: Compound Annual Growth Rate
Source: ASX, Chi-X, BetaShares. 

Market cap

  • ASX Exchange Traded Product market cap: $125.3B1 – all time end-of-month high
  • Market cap change for month: 0.13%, $0.2B
  • Market cap growth for the last 12 months: 75.5%, + $53.9B

Comment: The industry ended September 2021 at a fresh all-time high of $125.3B total market cap, with total industry growth of $200m for the month. Industry growth over the last 12 months has been 75.5%, for a total of $53.9B 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): +$2.9B – all time high monthly net inflows

Comment: Net flows into the industry were $2.4B, the third highest monthly inflows on record (after last month’s all time record of $2.7B).

Products

  • 268 Exchange Traded Products trading on the ASX and Chi-X.

Comment: 1 new fund was launched this month, a new Active ETF focused on global sustainable companies. We also saw 1 single bond exposure mature.

Trading value

  • ASX ETF trading value increased ~4% vs. the previous month with trading value the highest it has been since March 2020.

Comment: Monthly trading value remained high, increasing 4% month on month, with over $9B of trading activity recorded on the ASX for the month.

Performance

  • Best return performance this month came from geared short exposures over U.S. equities including the Nasdaq, such as our BBUS fund (11% performance), followed by Energy exposures, including OOO (9.8%) and FUEL (7.7%).

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

Top 5 category inflows (by $) – September 2021

Category Inflow Value
International Equities $963,600,471
Australian Equities $949,587,033
Cash $382,743,327
Fixed Income $333,550,941
Multi-Asset $200,646,341

Comment: The flows this month were decidedly more mixed than the pattern observed in the year so far, with Australian and International equities receiving approximately the same amount of flow ($950m and $963m respectively). We also saw a return to meaningful flows into Cash ($382m) and Fixed Income ($333m). The compositions of the industry’s flows illustrates the extent to which ETFs are able to help investors diversify their portfolios across all major asset classes.
Australian ETF Flows by Asset Class - Last 4 Months - September 2021
Source: Bloomberg, BetaShares.

Top sub-category inflows (by $) – September 2021

Sub-Category Inflow Value
Australian Equities – Broad $788,228,760
Cash $382,743,327
International Equities – Sector $286,441,780
Australian Bonds $239,729,891
International Equities – Developed World $237,361,199

Top sub-category outflows (by $) – September 2021

Sub-Category Outflow Value
Australian Equities – Sector ($13,967,594)
Australian Equities – Small Cap ($12,214,504)
Oil ($8,676,600)

Australian Industry Monthly Flows - Last 2 Years to September 2021

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