It was a bumper month for the Australian exchange traded fund industry, which increased 6.3% ($1.4 billion) to hit a new record of $23.2 billion in total funds under management (FUM) in May. Growth this month was significant across all metrics, including net inflows, trading activity and new products launched.
Market Size & Growth
- ASX Exchange Traded Funds Market Cap: $23.2B – New all-time record
- Market cap growth for month: +6.3%, +$1,365m
- Market cap growth for last twelve months: 23.7%, +$4.5B
Comment: The increase in FUM was aided by price appreciation as the Australian and global share markets rallied. In total, approximately 30%, or $411 million, of the month’s growth came from new money.
- New unit growth for month (units outstanding by number): +3.0%
- Net new money (units outstanding by $ value): +$411.1m
- 172 Exchange Traded Products trading on the ASX
- 11 new products launched this month
Comment: As we have been forecasting for some time, new product launches are starting to come thick and fast this year. We launched the first currency hedged Japanese and European equities ETFs on ASX – the BetaShares WisdomTree Japan ETF – Currency Hedged (ASX: HJPN) and BetaShares WisdomTree Europe ETF – Currency Hedged (ASX: HEUR). Vanguard launched an Australian Corporate Fixed Income ETF and there were new funds issued by VanEck and Australian Corporate Bond Company.
Average trading value increased 23% month on month
Best performer this month was BetaShares Nasdaq 100 ETF (NDQ), followed by Japanese equity exposures
Top 5 category inflows (by $) – May 2016
|Aus. Equities – Broad||$288,334,356|
|International Equities – Global||$34,700,293|
|International Equities – Developed||$18,188,430|
|Aus. Fixed Income||$17,608,068|
Top 5 category outflows (by $) – May 2016
|Aus. Equities – Large Cap||($10,153,160)|