Aussie ETFs attract $2.4b net flows in October
Australian exchange traded fund (ETF) sector saw net flows of $2.4 billion in October despite the Australian sharemarket remaining relatively flat, according to BetaShares’ Australian ETF Review.
The net flows into the ETF sector also helped to offset value declines as October saw the Australian sharemarket take a breather but ETF investors continued to allocate to domestic equities.
This led to the industry ending the month at a fresh record high of $126.9 billion, which represented a growth of $1.7 billion for the month, the data showed.
Although monthly trading value decreased by 12% after a very significant spike in trading in September – it remained high (over $8 billion) relative to averages and product development activity remaining strong.
The month saw four new funds launches, including a new active ETF by global equities manager Loomis Sayles, and the best performance came from hydrogen exposures, followed by geared US equities products (GGUS +15.0%) as the US market reached record levels.
“Just like last month, we saw continued high levels of flows into both Australian and International equities, although once again international equities dominated ($621 million and $904 million respectively),” the study said.
“For the second month in a row, we saw high levels of flows into cash ETFs and fixed income ETFs ($345 million and $304 million respectively) with the AAA Cash ETF receiving the highest amount of flows in the industry this month.
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