ASX ETF trading value drops 42% in April
The Australian exchange-traded fund (ETF) industry set a new record of $146 billion in funds under management (FUM), while the Easter period weakened its ASX trading value.
According to BetaShares, the industry saw a 2.4 per cent month-on-month increase in FUM and a $3.4 billion monthly market cap increase to $146 billion, a new record high.
Significant rises in global sharemarkets continued positive investor flows at $0.8 billion and asset value appreciation led to the growth, paralleling March’s results.
Despite this, the Easter holiday period saw a 42 per cent drop in ASX ETF trading value. While last month’s $11.1 billion value was the highest in the last 12 months, April’s value of $6.5 billion was the lowest since January 2021.
Over the last 12 months, the industry overall grew by 9.4 per cent year-on-year, or $12.5 billion.
Resembling last month, fixed income exposures recorded the highest level of net flows at $371.6 million. Broad Australian equities followed at $289.6 million.
iShares Core S&P/ASX 200 ETF saw the highest monthly inflows at $192 million, followed by Global X US Treasury Bond (Currency Hedged) at $67.8 million.
Global equities saw the largest outflow of $37 million.
“As we remarked last month, global equities ETFs have had a particularly slow start to the year, compared to previous years, with very little inflows recorded in the year to date in what is typically the most popular category in the industry,” said Ilan Israelstam, BetaShares’ chief commercial officer.
Two new products were launched in April, which were Global X’s Australian shares and fixed income ETFs.
The top product by assets under management was the Vanguard Australian Shares Index ETF at $12.3 billion followed by Magellan Global fund at $7.3 billion and Vanguard MSCI Index International Shares ETF at $5.7 billion.
AUTHOR
Jasmine Siljic
Recommended for you
Australian fund managers are actively seeking to launch Cayman versions of their funds to attract offshore flows, with Regal Partners set to launch its latest offering this month.
As private markets gain traction in Australia but only a limited pool of talent is available, three recruiters explore whether fund managers should consider looking overseas to find top talent.
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
