Share market volatility led to an all time record month of trading in the Australian exchange traded fund industry during August.

Average trading value increased 23% to hit a record high of $2.3 billion throughout August. Structural growth of the industry also continued throughout the month, with net inflows recorded of $330 million, even as markets globally experienced declines.

 Market Cap

• ASX Exchange Traded Funds Market Cap: $19.0B
• Market cap growth for month: -3.8%, -$703.4m
• Market cap growth for last twelve months: +51.3%, +$6.5B

Comment: While the overall industry experienced a decline in funds under management by 3.8%, to $19.0B down from $19.7B in July this can be attributed to market decline rather than fund outflows. In fact net inflows were positive indicating that overall industry growth was structurally still positive

New Money

• New unit growth for month (units outstanding by number): +4.8%
• Net new money (units outstanding by $ value): +$329.1m

Products

• 142 Exchange Traded Products are now trading on the ASX
• 3 new products launched– BetaShares U.S. Equities Strong Bear Hedge Fund – Currency Hedged (BBUS), BetaShares Geared U.S. Equity Fund – Currency Hedged (hedge fund) (GGUS), & Magellan Global Equities Fund (Currency Hedged) (MHG)

Trading Value

Average trading value increased 23% month on month to hit a new record high of $2.3B in traded value for the month

 Performance

The best performing products this month were:

• BetaShares Australian Equities Strong Bear Hedge Fund (BBOZ) rising 19%  and
• BetaShares Australian Equities Bear Hedge Fund (BEAR) rising 8.4% this month

Top 5 category inflows (by $) – August

Comment: Australian and international equities were the dominant product categories for inflows, with particularly strong flows into broad global exposures.

 Top category outflows (by $) – August

Comment: Net outflow activity by category was low throughout August, and largely confined to outflows in emerging markets equities.