BetaShares Australian ETF Review - October 2016 | BetaShares

BetaShares Australian ETF Review – October 2016

BY Ilan Israelstam | 8 November 2016
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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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