Betashares Australian ETF Review: April 2024

ETF assets dip despite positive monthly inflows

  • Positive ETF inflows were not enough to offset global sharemarket declines, causing Australian ETF Industry assets to dip during April.
  • April saw ETF industry assets fall less than one per cent (-0.9%) month-on-month, for a total monthly market cap decline of –$1.7B. The industry now sits at $195.0B – just shy of the all time high set last month ($196.7B).
  • Notwithstanding market volatility, industry flows remained positive, albeit muted – with $1.2B of net flows for the month.
  • ASX trading value was ~$11B for the month, up 22% month on month from March.
  • Over the last 12 months the Australian ETF industry has grown by 5%, or $49.0B.
  • It was a busy month for product launches with 11 new funds launched in April, including two new moderately geared funds over Australian and Australian and Global Equities exposures and 8 Active ETF launches.
  • The best performing ETFs this month were short funds, including our BBFD Geared Short U.S. Treasury Bond Fund – Currency Hedged (hedge fund) which returned ~11% for the Energy transition metals exposures, including our XMET Energy Transition Metals ETF , also performed relatively well.
  • Continuing the ongoing trend which started at the end of 2023, April was again a month where international equities products dominated in terms of the composition of net inflows, representing over half of the industry’s net flows ($544m). Australian equities returned to 2nd position for flows, followed by fixed income in 3rd spot.
  • Outflows were limited to profit taking in Short funds after strong performance in April.

Market Cap

  • Australian Exchange Traded Funds Market Cap (ASX + CBOE): $195.0B
  • ASX CHESS Market Cap: $165.8B1
  • Market Cap change for April: -0.9%, -$1.7B
  • Market cap growth for last 12 months: 33.5%, $49.0B

New Money

  • Net inflows for month: $1.2B

Products

  • 370 Exchange Traded Products trading on the ASX & CBOE
  • 11 new funds launched last month, including two new moderately geared funds over Australian and Australian and Global Equities exposures and 8 Active ETF launches

Trading Value

  • Trading value increased by 22% in April, with ASX trading value of ~$11B for the month

Performance

Top 5 category inflows (by $)

Broad Category Inflow Value
International Equities $543,754,138
Australian Equities $317,505,990
Fixed Income $236,995,532
Multi-Asset $61,705,112
Commodities $51,450,596

Top category outflows (by $)

Broad Category Inflow Value
Short ($30,607,971)

Top sub-category inflows (by $)

Sub-category Inflow Value
International Equities – US $316,673,124
International Equities – Sector $254,570,124
Australian Equities – Broad $237,359,516
Global Bonds $147,505,329
Australian Bonds $105,639,966

Top sub-category outflows (by $)

Sub-category Inflow Value
International Equities – Asia ($131,470,481)
Australian Equities – Short ($31,722,386)
Australian Equities – Sector ($31,063,542)
Fixed Income – E&R – ESG Lite ($23,835,501)
International Equities – Europe ($20,809,925)

Top Performing Products – April 2024

Ticker Product Name Performance
SNAS Global X Ultra Short Nasdaq 100 Hedge Fund 11.7%
BBFD Betashares Geared Short U.S. Treasury Bond Fund-Currency Hedged(Hedge Fund) 11.5%
WIRE Global X Copper Miners ETF 10.5%
BBUS Betashares US Equities Strong Bear Currency Hedged (Hedge Fund) 10.5%
XMET Betashares Energy Transition Metals ETF 10.4%

Footnotes:

1 Since February 2023, the ASX started reporting additional data on a CHESS-only basis. The primary use of such data is that it will exclude, amongst other things, the FuM and Flows in ‘dual class’ Active ETFs and potentially provide a more accurate picture of exchange traded activity.

 

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Written by

Ilan Israelstam

Chief Commercial Officer

Investor & founder with a Financial Services & Fintech focus. Co-founder of Betashares. Passionate about entrepreneurship and startups.

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1 comment on this

  1. silvio fontana  /  17 May 2024

    I am grateful that I had the opportunity to invest heavily in Betashares ETF’s and made a considerable profit. Then, timely, I sold up all and invested in PMGOLD, and made another big hit. As our FED and RB keep lying to us about the state of inflation, I will secure my future by staying in GOLD for the next few years. All ETF’s will take a big hit from now on.

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