BetaShares Australian ETF Review – November 2014 | BetaShares

BetaShares Australian ETF Review – November 2014

BY Ilan Israelstam | 5 December 2014
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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).

Market Cap

  • 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 money

  • 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!

Products

  • 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.

Trading Value

  • Average trading value decreased 10% month on month but remains above the $1B mark

 Performance

Wheat exposure the best performer this month, with strong growth also experienced in US and Global Equities ETFs

Top Inflows by Category

Category Inflow Value
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
Cash $25,223,036

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

Category Outflow Value
International Equities – Global ($25,592,692)
Commodities ($11,188,204)
Short ($1,807,620)
Resources Sector ($1,516,680)

Comment: Outflows this month were highest in Global Equities products – as investors appeared to take profits after strong gains were experienced for the month.

4 Comments

  1. Arthur  |  December 13, 2014

    Is there an au etf which includes Australian companies trading in the us capturing the rise in us$ against au$ .?

    1. BetaShares  |  December 15, 2014

      Hi Leslie,
      To our knowledge there is no Australian ETF solely focused on Australian companies which are listed on US stock exchanges (there probably aren’t enough to justify an index on this). However, our UMAX fund (see here) provides investors with exposure to the stocks comprising the S&P 500 Index (which tracks 500 large capitalisation U.S. equities) while providing regular income that exceeds the dividend yield of the stocks alone. As the product is not hedged, it will additional capture any rise in the US$ against the AU$.

      For a much ‘purer’ exposure to currency, our US Dollar ETF provides simple, low cost exposure to the performance of the US Dollar relative to the Australian dollar

  2. Colleen  |  December 17, 2014

    I am interested in your HSVT Fund on the ASX.

    1. BetaShares  |  December 18, 2014

      Colleen,
      Thanks for your email. Please see our factsheet and information on HVST here

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