ETFs up in July, with greater risk focus
The Australian exchange traded fund (ETF) market grew 4 per cent in July, with investors showing a greater interest in equities, according to BetaShares' July Australian ETF Review.
Net new asset growth was $57 million, with the total market capitalisation growing to $5.4 billion - just short of the all time high of $5.45 billion, according to BetaShares.
Investors showed a greater risk appetite, with six of the 10 most popular ETFs for the months being equities based, although yield products such as high dividend and cash remained popular, the report found.
This was a reverse of the trends seen in June when the bulk of new inflows went into defensive asset classes such as cash. Average trading value also rose by 5 per cent in July.
The best performing funds for the month were agriculture and food based products - up between 11 and 25 per cent, the report found.
The three new ETF products listed in the month included two bond funds and the country's first 'bear fund', designed to go up when the market goes down, according to BetaShares.
"There are now 81 exchange-traded products available on the ASX [Australian Securities Exchange] and the breadth of asset classes now available will continue to push the industry forward and in line with more developed exchanges overseas," said Drew Corbett, head of investment strategy at BetaShares.
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