The Australian exchange traded fund (ETF) market continued its rapid growth over the first half of the year with ETF market capitalisation growing by $3.4 billion (23%) to reach a new record high of $18.4 billion at the end of the 2014/15 financial year. Significantly, despite subdued price growth in equities markets, investors continued to support ETFs, with around $2.9 million of net new money flowing into the industry. Over the last twelve months, the industry has grown by $6.7 billion, representing a 57% increase year-on-year.
Highlights of the BetaShares Australian ETF Review: Half Year 2015, follow below
- ASX Exchange Traded Funds Market Cap: $18.4B
- Market cap growth for half year: 22.9%,+ $3.4B
- Market cap growth for last twelve months: 56.8%, +$6.7B
- New unit growth for half year (units outstanding by number): 37.0%
- Net new money for half year (units outstanding by $ value): +$2.9B
- 138 Exchange Traded Products trading on the ASX
- 38 new products launched in the half year, 1 closure
Comment: 2015 looks to be shaping up as ‘the year of new product’ for ETFs, with 38 new products being launched over just the first six months of the year, compared to 11 new products launched in 2013, and 12 new products launched in 2014.
- Substantial increase in trading value (30%) compared to previous half year period
- Asian equities exposures the best performing products for the half year (Japan, China and Hong Kong)
Top 5 Category Inflows (by $) – YTD
|International Equities – Developed||$896,234,298|
|Aus. Equities – Broad||$790,879,882|
|International Equities – Global||$331,411,881|
|Aus. High Yield||$245,571,834|
|Aus. Fixed Income||$211,841,030|
Comment: International equities continued to be the dominant product category for inflows over the first half of the year, with around $1.2 billion of net inflows into international equities products. There was also a return to broad Australian equities exposures as investor confidence in the local market returned, with almost $800 million worth of inflows in this product category.
Top Category Outflows (by $) – YTD
Australian Exchange Traded Fund Industry: Month of June 2015
Market growth pauses, but inflows continue
After 16 months of straight growth, the ETF industry finally took a breather in June, with industry market capitalisation dropping by 2%. While around $500 million in new money flowed into ETFs over the month, this was counteracted by a drop in market values.
Product development continued to progress strongly in June, with nine new products launched over the month. Inflows into broad Australian equities products also rapidly increased, with the category taking in over $400 million in June.
Market Cap & New Money
- Market cap growth for month: –1.7%,+ -$317.1m
- New unit growth for month (units outstanding by number): 1.3%
- Net new money (units outstanding by $ value): +$492.9m
- 9 new products launched this month
- Trading value increased 4% month on month
- Agricultural commodities the best performers this month
Top 5 Category Inflows (by $) – Month
|Aus. Equities – Broad||$402,041,525|
|Aus. High Yield||$49,530,924|
|International Equities – Developed||$37,455,107|
|International Equities – Global||$24,577,944|
|Aus. Equities – Large Cap||$20,198,205|
Comment: There was a marked increase in flows into Australian broad market equities this month, with investors apparently seeing value in the Australian sharemarket, rather than the international markets
Top 5 Category Outflows (by $) – Month
|International Equities – Emerging Markets||($13,350,936)|