BetaShares Australian ETF Review: October 2015 | BetaShares

BetaShares Australian ETF Review: October 2015

BY Ilan Israelstam | 10 November 2015
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The Australian ETF industry has broken through the $20 billion mark in total funds under management (FUM).

As global share markets rallied, the Australian ETF industry ended the month at a new record high of $20.4 billion, growing approximately 7%, or $1.3 billion, during the month of October – the second largest increase on record.

Net inflows were once again positive during the month, with $247 million of new money entering the industry, indicating that 75% of the growth this month was due to positive market movements.

Market Cap

  • ASX Exchange Traded Funds Market Cap: $20.4B – new record high
  • Market cap growth for month: +6.4%, +$1.3B
  • Market cap growth for last twelve months: 52.2%, +$7.1B

Comment: Regular readers of the ETF Review will not be surprised by this very fast level of growth, given that, even during months when market cap has declined, the industry has continued to experience steady net inflows each and every month.

As a result of continued and sustained structural growth (in units outstanding) a return to growth in share/asset prices will always create a ‘motza’ of a month!

 New Money

  • New unit growth for month (units outstanding by number): 2.7%
  • Net new money (units outstanding by $ value): +$273.7m

Products

  • 143 Exchange Traded Products trading on the ASX
  • No new products launched this month

Comment: This month saw a pause in new product launches – this should be considered nothing more than a pause however (think ‘single ad between overs’ rather than ‘prime time advertising free-for-all’) – expect more new products in November.

 Trading Value

The average trading value decreased 14% month on month.

Performance

The best performing exposures this month were:

  • Individual Asian countries (South Korea, Singapore and China)
  • Australian Small-Cap Miners
  • Geared Australian Equities

Top 5 category inflows (by $) – October

Category Inflow Value
International Equities – Developed $119,158,645
International Equities – Global $47,243,366
Aus. High Yield $46,898,529
Cash $45,237,014
Aus. Equities – Broad $37,292,683

Comment: The largest inflows for October were recorded in the BetaShares Australian High Interest Cash ETF (ASX:AAA), while the most popular product category for inflows was global developed markets.

Top category outflows (by $) – October

Category Outflow Value
International Equities – Emerging Markets ($98,975,534)
Resources Sector ($5,020,268)
Financials Sector ($2,257,392)

Comment:  Net outflows were dominated by what appeared to be institutional selling in emerging markets equities exposures.

 

1 Comment

  1. […] Read more about recent growth in the ETF sector here. […]

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