BetaShares Australian ETF Review - October 2016

The Australian exchange traded fund industry bucked the trend of broader market declines during October and finished the month valued at a stable $24.1B, which was approximately the same value as September. The industry stood its ground amongst local and international sharemarket declines to record higher levels of inflows compared to September, with +$629m of new money received.

The market conditions suited short funds with the two BetaShares Strong Bear Hedge Funds (ASX: BBOZ/ BBUS) amongst the best performing exposures for the month, indicating how product innovation in exchange traded products has allowed investors to take a view on the market and profit from, or protect against, falling sharemarkets.

Market Size & Growth

ASX Exchange Traded Funds Market Cap: +$24.1B
Market cap growth for month: -0.2%, -$49.3m
Market cap growth for last twelve months: +16.4%, +$3.4B

New Money

New unit growth for month (units outstanding by number): +2.9%
Net new money (units outstanding by $ value): +$629m

Products

199 Exchange Traded Products trading on the ASX
15 new products launched this month

Comment: BetaShares launched the Australian Ex-20 Portfolio Diversifier ETF – ASX: EX20 during the month while iShares added 4 factor products and 10 new single bond XTBs entered the market.

Trading Value

Average trading value declined -21% vs. last month

Performance

Best performers this month were BetaShares Funds: Global Banks (ASX: BNKS), Hedged Japanese Equities (ASX: HJPN) and Strong Bear Australian and US Hedge Funds (ASX: BBOZ and BBUS).

Top 5 category inflows (by $) – October 2016

Category		Inflow Value
Australian Equities		$335,204,301
International Equities		$102,798,058
Fixed Income		$97,574,137
Cash		$42,756,454
Australian Listed Property		$15,281,824

Top category outflows (by $) – October 2016

Category		Outflow Value
Short		($3,261,930)

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