Betashares Australian ETF Review: August 2023
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August 2023 Review: Strongest inflows for 12 months drive industry to record high
The strongest monthly inflows of the last 12 months drove the Australian ETF industry to a new all-time high in assets under management as at the end of August
Exchanged Traded Funds Market Cap
• Australian Exchange Traded Funds Market Cap (ASX + CBOE): $156.1B – new all time high
• ASX CHESS Market Cap: $140.8B1
• Market Cap increase for month: 1.6%, $2.5B
• Market Cap growth for last 12 months: 20.1%, $26.1B
• Net inflows for month: $2.2B – highest inflows for 2023 to date, and within the last 12 months
• 342 Exchange Traded Products trading on the ASX & CBOE
• Three new ETFs launched: 2 Active ETFs from JP Morgan (Fixed Income and Emerging Markets), 1 new Active ETF from IML (Australian Shares) and a new US equities product from Global X
• 1 XTB single bond exposure was closed
• ASX ETF trading value grew 8% month on month, with ASX trading value rising above $11.B for the first time in 15 months with the 5th highest monthly value traded on record
• URNM Global Uranium ETF was the best performing product this month, rising ~15% as a result of a significant volume of long-term uranium purchase contracts being signed combined with concerns over disruptions to supply
Source: ASX, CBOE
Top 5 category inflows (by $) – August 2023
|Broad Category||Inflow Value|
Comment: In a departure from previous months, this month we saw the top category for inflows being broad Australian equities ETFs which, at $1.1B, represented a 50% of the total months inflows. Australian Fixed Income exposures also continued to be popular with investors ($612m), and even at position 2 for this month, received higher flows than the month before.
Source: ASX, CBOE
Top sub-category inflows (by $) – August 2023
|Australian Equities – Broad||$1,007,290,322|
|International Equities – Developed World||$246,616,915|
Top sub-category outflows (by $) – August 2023
|International Equities – Europe||($180,250,890)|
|International Equities – Sector||($96,136,177)|
|International Equities – Asia||($43,957,545)|
|International Equities – Emerging Markets||($28,718,059)|
|US Equities – Short||($24,570,040)|
Comment: There were very little outflows at a category or sub-category level this month, with ETF investors largely choosing to hold or add to their positions, in aggregate.
*Past performance is not an indicator of future performance.
1. Since February 2023, the ASX started reporting additional data on a CHESS-only basis. The primary use of such data is that it excludes, amongst other things, the FuM and Flows in ‘dual class’ Active ETFs and potentially provide a more accurate picture of exchange traded activity.
Investor & founder with a Financial Services & Fintech focus. Co-founder of Betashares. Passionate about entrepreneurship and startups.Read more from Ilan.