Continued industry growth and inflows into Australian Equities ETFs
The Australian ETF industry recorded another strong month of growth, with total industry FuM at the end of May hitting a new high as the industry nears the $30B mark. Total industry FUM at month end was $29.0B, with growth of 2.6% or $730M for the month. In a month where the Australian market tumbled, almost all the growth came from net new money, rather than asset appreciation.
Market Cap
- ASX Exchange Traded Funds Market Cap: $29.0B – New record high
- Market cap growth for month: +2.6%, + $733.7m
- Market cap growth for last twelve months: 25.1%, +$5.8B
Comment: We’re excited to be getting close another ’round number’ milestone of $30B. Growth trajectory for the industry continues to be robust.
New Money
- New unit growth for month (units outstanding by number): 3.0%
- Net new money (units outstanding by $ value): +$657.8m
Products
- 206 Exchange Traded Products trading on the ASX
- 2 new products launched this month -VanEck Vectors Australian Corporate Bond Plus ETF (ASX: PLUS) and UBS IQ Cash ETF (ASX: MONY)
Comment: Over the next quarter, we expect to see more products based on the cash & fixed income. BetaShares recently launched our first bond fund, for example, our Australian Bank Senior Floating Rate Bond ETF (ASX: QPON).
Trading Value
- Average trading value up 44% to be the second largest trading month on record (first largest set in February 2017)
Performance
- Asian Equities and BetaShares Australian Equities Strong Bear Hedge Fund (ASX: BBOZ) the best performers this month
Top 5 category inflows (by $) – May 2017
| Category | Inflow Value | |
| Australian Equities | $ 329,024,194 | |
| International Equities | $ 202,022,526 | |
| Fixed Income | $ 69,184,475 | |
| Commodities | $ 39,293,600 | |
| Australian Listed Property | $ 22,900,867 | |
Top category outflows (by $) – May 2017
| Category | Outflow Value | |
| Currency | ($ 7,031,273) | |
| Cash | ($ 4,861,572) | |
Top sub- category inflows (by $) – May 2017
| Category | Inflow Value | |
| Australian Equities – Broad | $ 248,128,970 | |
| Australian Equities – High Yield | $ 80,771,568 | |
| International Equities – Developed World | $ 76,299,954 | |
| Australian Bonds | $ 53,279,231 | |
| International Equities – Sector | $ 36,515,110 | |
Top sub- category outflows (by $) – May 2017
| Category | Outflow Value | |
| Australian Equities – Large Cap | ($ 10,633,455) | |
| Currency | ($ 7,031,273) | |
| Cash | ($ 4,861,572) | |
Ilan Israelstam is the Head of Strategy & Marketing for BetaShares. BetaShares is an Australian manager of funds which are traded on the Australian Securities Exchange. BetaShares offers a range of exchange traded funds which cover Australian and international equities, cash, currencies, commodities and alternative strategies. Author website: www.betasharesblog.com.au/author/ilanisraelstam
This post was originally published at the BetaShares Blog at www.betashares.com.au/insights/etf-review-may-2017
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