BetaShares Australian ETF Review: May 2015 | BetaShares

BetaShares Australian ETF Review: May 2015

BY Ilan Israelstam | 9 June 2015
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The Australian exchange traded fund industry reached a new record high of $18.6 billion in funds under management in its sixteenth straight month of positive growth. The market grew by $900 million over the month, with around 60% of growth coming from market movements and the remaining 40% from new money inflows.

While this positive growth is impressive the real story during May was product development. A record 20 new ETPs were launched on the ASX in the month, including BetaShares’ Nasdaq 100 ETF (NDQ).

Highlights from the BetaShares Australian ETF Review – May 2015 are detailed below:

Market Cap

  • ASX Exchange Traded Funds Market Cap: $18.6B – A new record high
  • Market cap growth for month: +5.1%, +$893.7m
  • Market cap growth for the last twelve months: 62.5%, +$7.2B

 New Money

  • New unit growth for the month (units outstanding by number): 4.0%
  • Net new money (units outstanding by $ value): +$358.0m

Products

  • 129 Exchange Traded Products trading on the ASX
  • 20 new products launched – BetaShares Nasdaq 100 ETF (NDQ), Market Vectors Small Cap Dividend Payers ETF(MVS), UBS MSCI Asia Apex 50 Ethical ETF (UBP) and 17 single bond ETPs from Australian Corporate Bond Company

Comment: The most significant feature in the industry this month has  been the product development activity, with a total of 20 new products launched.  This activity in the industry over the first half of the year shows providers are seeing increased opportunities in the local market. For example, the recently launched BetaShares Nasdaq 100 ETF (ASX code: NDQ) provides Australian investors with a convenient and cost effective way to access some of the world’s most revolutionary companies, including household names such as Apple, Microsoft and Google.

Interestingly, there have now been 29 new ETPs launched during the first 5 months of 2015 (and one closure) compared to a total of 12 product launches in 2014. It appears that 2015 is the year when ETP proliferation really ‘kicks into gear’.

Trading Value

  • Average trading value decreased 19% month on month to $1.7B, after last month’s record trading levels

Performance

  • Global Healthcare and US Midcaps were the best performing products this month, followed by European exposures

Top inflows by category

May_inflows

Top outflows by category

May_outflows
Comment: Inflows in May were highest in broad Australian equities and developed international equities products, with particularly strong flows into European exposures. As per last month relatively significant redemptions were largely restricted to emerging markets exposures, including China and Taiwan focused equities products.

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