BetaShares Australian ETF Review - July 2014 | BetaShares

BetaShares Australian ETF Review – July 2014

BY Ilan Israelstam | 11 August 2014
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The growth of the Australian exchange-traded product (ETP) market accelerated in July to break through $12B in assets under management, reaching a new record high of $12.2 billion, according to the BetaShares Australian ETF Review – July 2014. Funds under management increased by over $500 million – or 4.6% – during the month; driven by $300 million of new net inflows as well as the strong performance of Australian and global stock markets in July. Highlights of this month’s report are set out below:

Market Cap

  • ASX Exchange Traded Funds Market Cap: $12.2B – new record high
  • Market cap growth for month:  4.6%,+ $538.4m
  • Market cap growth for last twelve months: 47.6%+$4.0B

New money

  • New unit growth for month (units outstanding by number): 1.8%
  • Net new money (units outstanding by $ value): +$299.4n

Comment: The industry has once again crossed another milestone, this time being $12B in funds under management. The rise in funds under management of about $500 million over the course of July needs to be considered in the context of the increase through the first half of 2014, which was $1.7 billion. The rate of growth has accelerated.

Products

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

Trading Value

  • Trading value increased 19.2% month on month

Comment: As the attractiveness of ETFs is becoming more widely recognised, so trading values are increasing. Trading value increased by 19.2% in July relative to June – representing the highest level of ETF trading (by value) for 12 months

Performance

  • China and Resources ETFs the best performers

Top Inflows by Category

Category Inflow Value
International Equities – Developed $136,423,278
Cash $81,925,814
Aus. High Yield $18,467,245
A-REIT Sector $13,961,180
Aus. Fixed Income $9,593,469

Comment: During July, developed global equities was the sector that received the most inflows – more than $130 million. Cash and high yield equities were the next most supported sectors. The most popular product by inflows in July was the BetaShares Australian High Interest Cash ETF (AAA), which has been the product experiencing the highest level of inflows in the calendar year to date.

Top Outflows by Category

Category Outflow Value
Short ($4,444,975)
Currency ($4,193,360)
Financials Sector ($88,663)

Comment:  Outflows were recorded in Short exposures as the Australian equities market rallied in July, while additional outflows were recorded in US Currency exposures as investors took profits from a weakening AUD.

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