The Australian exchange traded fund market surpassed $14 billion in funds under management in November, driven by strong new money flows and growth in global equity markets. 60% of industry growth over the month came from new inflows, which totaled around $600 million. Product development activity also helped to stimulate growth, as three new funds were launched on the ASX, including the BetaShares Australian Dividend Harvester Fund (managed fund) (ASX: HVST).
- ASX Exchange Traded Funds Market Cap: $14.0B – New record high
- Market cap growth for month: +4.8%, +$600.2m
- Market cap growth for last twelve months: 45.5%, +$4.4B
- New unit growth for month (units outstanding by number): 2.7%
- Net new money (units outstanding by $ value): +$411.9m
Comment: This is a big month of inflows for our industry, representing over 60% of the growth for November. It takes the industry to over $14B – another milestone month!
- 98 Exchange Traded Products trading on the ASX
- 3 new products launched this month – BetaShares Australian Dividend Harvester Fund (HVST), Vanguard MSCI Index International Shares (Hedged and Unhedged versions) (VGS, VGAD)
Comment: The increased level of product development in the last few months of 2014 is encouraging. We continue to expect very strong product development activity throughout 2015.
- Average trading value decreased 10% month on month but remains above the $1B mark
Wheat exposure the best performer this month, with strong growth also experienced in US and Global Equities ETFs
Top Inflows by Category
|International Equities – Developed||$202,399,636|
|Aus. Equities – Broad||$110,692,169|
|Aus. High Yield||$36,077,174|
|Aus. Equities – Large Cap||$30,865,038|
Comment: Highest inflows this month came from US Equities ETF, which also experienced strong investment performance. US equities ETFs made up two of the top five performing products of the month.
Top Outflows by Category
|International Equities – Global||($25,592,692)|
Comment: Outflows this month were highest in Global Equities products – as investors appeared to take profits after strong gains were experienced for the month.