BetaShares Australian ETF Review – October 2017

BY Ilan Israelstam | 14 November 2017
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Do I sound like a broken record? Another record month!

Readers could well be forgiven for thinking that I am on repeat, as I state that, once again, the Australian ETF Industry had a record month! Records were broken in terms of total industry funds under management and record monthly FuM growth.

The Australian ETF industry grew by approximately $1.5B this month, being the largest absolute $ growth on record, with the industry rising to a fresh record high. Total industry FuM at the month end was $33.5B, a growth rate of 4.7% or $1498m for the month. The growth was aided by strong asset gains across the board which accounted for ~48% of the industry’s monthly growth.

Market Size & Growth

Market cap

  • ASX Exchange Traded Funds Market Cap: $33.5B– new record high!
  • Market cap growth for year: +4.7%, +$1497.6m
  • Market cap growth for the last 12 months: 39.2%, +9.4B

New money

  • New unit growth for year (units outstanding by number): 1.9%
  • Net new money (units outstanding by $ value): +$788.5m

Products

  • 216 Exchange Traded Products trading on the ASX
  • 1 new product international bond product launched, and 1 single bond product closed (as it reached maturity)

Trading value

  • Trading value up 11% month on month

Performance

  • Asian markets the best performers this month, particularly South Korea and Taiwan

Top 5 category inflows (by $) – October

Category                                                          Inflow Value
Australian Equities $ 297,052,946
International Equities – Developed World $ 268,743,473
Fixed Income $ 121,551,931
Cash $ 82,360,376
Australian Listed Property $ 18,910,406

Top category outflows (by $) – October

Category                                                          Outflow Value
Commodities ($ 4,622,236)
Currency ($ 2,635,231)

Top sub-category inflows (by $) – October

Category                                                          Inflow Value
Australian Equities – Broad $ 285,790,868
International Equities – Developed World $ 114,714,911
Australian Bonds $ 95,571,710
Cash $ 82,360,376
International Equities – Asia $ 50,005,148

Top sub-category outflows (by $) – October

Category                                                                  Outflow Value
Australian Listed Property ($ 11,351,840)
Oil ($ 841,062)

Category                                                          Outflow Value
Australian Listed Property  ($15, 335, 592)
Oil  ($4, 326, 780)
Currency  ($2, 635, 231)
Broad Commodities  ($1, 406, 370)