Data from the BetaShares Australian ETF Review from March shows that the exchange trade fund industry grew three per cent during March, representing a total growth of $685 million.
Broad Australian equities received the highest level of inflows, followed by the Australian High Interest Cash ETF (ASX:AAA).
New money allocated into the industry represented 64 per cent of growth in March ($438 million), with the reminder deriving from asset value appreciation.
The best return to investors across the ETF products industry in March were Australian and US geared shared funds GEAR and GGUS, each recording 10 per cent for the month.
The review also shows that while no new products were launched throughout the month, 10 products issued by ETF Securities were closed. Total industry outflows resulting from these closures amassed less than $1.5 million.
BetaShares managing director, Alex Vynokur was confident that market closures were not a cause for concern.
“While product closures are not yet common in Australia, they are a ‘business as usual’ feature in larger markets, such as the US,” he said.
“Some product rationalisation is inevitable as the industry matures in Australia.”
BetaShares currently has approximately $2.7 billion in assets under management.
