BetaShares Australian ETF Review: March 2022 | BetaShares

BetaShares Australian ETF Review: March 2022

BY Ilan Israelstam | 20 April 2022
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ETF Review March

Reading time: 2 minutes

MARCH 2022: INDUSTRY RETURNS TO GROWTH AS MARKET REBOUNDS

After two straight months of negative growth, the Australian ETF industry regained its growth trajectory in the month of March, as sharemarkets rebounded strongly. Read on for details, including best performers, asset flow categories and more.

Australian ETP Market Cap: July 2001 – March 2022

CAGR: Compound Annual Growth Rate
Source: ASX, Chi-X, BetaShares. 

Market cap

  • Australian Exchange Traded Funds Market Cap: $135.4B
  • Market cap increase for month: 4.1%, $5.3B
  • Market cap growth for the last 12 months: 31.6%, + $32.5B

Comment: The industry grew 4.1% ($5.3B) month on month and ended March at $135.4B, a touch shy of the highs recorded in December ($136.9B).

New money

  • Net flows for month: +$1.3B

Comment: Along with asset value increases, we also saw ETF investors return with more confidence to the market, with net inflows of $1.3B for the month (25% of total monthly industry growth). While this is significantly more than very anaemic flows of February ($212m) the inflow figure is still relatively low compared to average net flow figures over the last 12 months (12 month average is $1.8B/monthly), indicating that investor caution is still very much present.

Products

  • 297 Exchange Traded Products trading on the ASX 
  •  3 new products launched – we launched a new thematic ETF, our Digital Healthcare and Telemedicine Product (ASX: EDOC). In addition, two Active ETFs were launched, Janus Henderson launched a global equities fund focus on ‘achieving net zero’ and Nanuk converted their unlisted fund into an open class structure.
  • 1 single bond product matured

Trading value

  •  ASX ETF Trading value increased 12% month on month to reach $11.4B, the second highest trading value on record

Comment: As market volatility continued, trading values remained very high, with ASX ETF trading value reaching $11.4B, the second highest monthly level on record.

Performance

Comment:  Industry growth over the last 12 months has been 34%, for a total of $32.8B net growth.

Top 5 Category inflows (by $) – March 2022

Category Inflow Value
International Equities $714,864,109
Australian Equities $379,561,494
Fixed Income $375,461,765
Multi-Asset $99,515,307
Listed Property $80,983,210

Top 5 Category outflows (by $) – March 2022

Category Inflow Value
Cash ($478,638,772)
Currency ($15,130,320)

 

Source: Bloomberg, BetaShares.

Top Sub-Category inflows (by $) – March 2022

Sub-Category Inflow Value
Australian Equities – Broad $296,137,156
International Equities – Developed World $233,050,513
Australian Bonds $205,441,690
Global Bonds $170,020,076
International Equities – US $144,965,703

Comment: In terms of category flows, the industry returned to a more traditional pattern, with international equities ETFs receiving the highest level of flows ($714m), followed by Australian equities. That said, at a sub-category level, broad Australian equities exposures received the highest level of inflows, with Australian equities apparently continued to be favoured over international equities, mirroring their overall better relative performance.

Top Sub-Category outflows (by $) – March 2022

Sub-Category  Inflow Value
Cash ($478,638,772)
Australian Equities – Ethical ($31,026,685)
Oil ($24,967,848)
Australian Equities – Geared ($15,407,124)
Currency ($15,130,320)

 

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