The Australian exchange traded fund industry grew by 3.3 per cent at the end of April, with funds under management (FUM) hitting a new record of $28.3 billion, BetaShares said.
The BetaShares Australian ETF Review – April 2017 found that the latest monthly growth saw a relatively even split between new inflows, which accounted for 43 per cent or $400 million, and net asset value appreciation (57 per cent or $500 million).
The best performers during the period were ETFs with unhedged exposure to European equities as investors continued to buy into the European economic recovery.
As far as asset categories were concerned, both Australian equities and bonds saw the largest inflows, with almost no outflows recorded at either a category or sub-category level.
BetaShares’ managing director, Alex Vynokur, said that the European rally that began in April was a good reminder for the local investors that there were higher growth prospects offshore, especially when the Australian market was flat or underperforming.
“Investing in locally traded exchange traded funds with international exposures are an excellent alternative for Australian investors to diversify their portfolios,” he said.
Two new products were launched in the Australian Securities Exchange (ASX) in April: BetaShares Australian Small Companies Select fund and ANZ ETFS Global Technology ETF, bringing the total number of exchange traded products to 204.
