Betashares Australian ETF Review: February 2023
3 minutes reading time
February 2023 Review: Investor flows push industry to a new high, even as markets decline
The Australian ETF Industry’s FuM growth was positive, albeit slow, at 0.9% month-on-month, for a total monthly market cap increase of $1.3B. Read on for details, including best performers, asset flow categories and more.
Exchanged Traded Funds Market cap
- Australian Exchange Traded Funds Market Cap(ASX + CBOE): $139.7B – new all time high
- Market cap increase for month: 0.9%, $1.3B
- Market cap growth for last 12 months: 7.4%, $9.7B
Comment: Notwithstanding falling sharemarkets investors continued to allocate to ETFs, with net inflows causing the industry to once again set a new all-time high in funds under management (FuM).
- Net inflows for month: +$0.9B
Comment: Unlike last month, in February, the majority of the industry’s growth came from net flows (net new money) which contributed ~70% of the monthly growth.
- 325 Exchange Traded Products trading on the ASX
- 4 new products launched this month 3 covered call ETFs from Global X and a new ‘Global Transition” Active ETF from Platinum
- ASX ETF trading value increased 528% for the month, for a total of $9B
As both global and Australian sharemarkets declined, the U.S. dollar rallied, with the leveraged US Dollar Fund, YANK Strong U.S. Dollar Fund (hedge fund) topping the performance tables, with ~11% return for the month. Carbon credits exposures also performed strongly rising ~9% for the month.
Top 5 category inflows (by $) – February 2023
|Broad Category||Inflow Value|
Top category outflows (by $) – February 2023
Comment: Unlike January, this month we saw considerable interest in broad market Australian equities ETFs ($375m inflows), with investors seemingly taking the view that the ‘lucky country’ remains in a better position economically than other developed global markets. Fixed income exposures continue to remain popular receiving $370m of net flows.
Top sub-category inflows (by $) – February 2023
|Australian Equities – Broad||$135,908,948|
|Australian Equities Bonds||$100,372,366|
|International Equities – US||$97,284,639|
|International Equities – E&R – Ethical||$97,127,400|
Top sub-category outflows (by $) – February 2023
|International Equities – Europe||($75,220,333)|
|International Equities – Developed World||($70,567,366)|
|Australian Equities – E&R – Ethical||($58,215,662)|
|International Equities – Asia||($36,301,175)|
|Australian Equities – Short||($10,437,440)|
It is notable that although inflows remain relatively muted compared to previous years, we are not seeing any major outflows across the industry. The exception to this has been Active ETFs, where ~$300m of outflows have been recorded to date this year.
*Past performance is not an indicator of future performance.
Investor & founder with a Financial Services & Fintech focus. Co-founder of Betashares. Passionate about entrepreneurship and startups.Read more from Ilan.