ETFs still gaining momentum
The Exchange Traded Fund (ETF) industry is continuing to gather pace in Australia, according to the latest data released by specialist BetaShares.
Releasing the results of its Australian ETF Review this week, BetaShares said inflows continued their upward trend in October, doubling to $56 million as the total market capitalisation increased by 7 per cent.
It said that following the last three months of volatility arising from European debt issues, the high levels of net buying and increased trading volumes indicate a return to markets by investors across all major asset classes.
It said this included blue chip stocks where investors were favouring broader, diversified indices, international ETFs which continued to trade heavily off the back of a stronger Australian dollar, and Australian dollar ETFs.
"While last month saw investors flocking to asset classes which would result in gains from weakening Australian conditions, increased trading volumes and inflows suggest domestic equities returned to favour for Australian investors this month," BetaShares head of investment strategy, Drew Corbett said.
"Also encouraging, was the strong trading and inflows across a variety of asset classes," he said.
AUTHOR
Mike Taylor
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