Australian ETF Review – May 2017

Australian ETF Review – May 2017

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.

Australian ETP Market Cap: July 2004 - May 2017 (A$m)

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

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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