Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Aussie bond ETF inflows triple in May

Australian-bonds/bonds/fixed-income/ETFs/

19 June 2024
| By Laura Dew |
image
image image
expand image

Australian bond ETFs saw monthly inflows triple in May to reach $324 million, according to Betashares.

Overall fixed income ETFs saw inflows of $455 million in May, almost double the flows seen in the previous month.

According to the monthly statistics from Betashares, fixed income saw the third-highest inflows in May behind international and Australian equities. This was almost double the $236 million in flows seen in April, which was a muted month for ETF flows overall. 

Breaking it down by subsector during May, Australian bonds saw $324 million in inflows which was significantly higher than $105 million seen in April. 

However, sentiment towards global bond ETFs remained low with flows falling by 39 per cent from $147 million to $89 million during the month. 

Although flows into fixed income products have improved, none of the top 10 ETFs by inflows sat in the space, the firm said, with major flows dominated by Australian equity funds such as Betashares Australia 200 ETF and Vanguard Australian Shares Index ETF.

On the contrary, three of the top 10 ETFs reporting the largest outflows were in this space. These were Franklin Australian Absolute Return Bond Fund (Managed Fund) which saw outflows of $18.4 million, Vanguard Australian Fixed Interest Index ETF lost $15.7 million, and ActiveX Ardea Real Outcome Bond Fund (Managed Fund) lost $12.7 million.

Recent ETF launches in the fixed income space include the iShares 15+ Year Australian Government Bond ETF, Betashares Australian Major Ban Subordinated Debt ETF, and the Macquarie Dynamic Bond Active ETF. 

Overall, the Australian ETF industry has grown by 34.5 per cent, or $50.9 billion, over the last 12 months.

Previous research by AUSIEX found demand for Australian dollar fixed income ETFs considerably increased between January and April. According to the firm’s adviser trading data, the net traded value (buy value less sell value) of Australian dollar fixed income ETFs more than doubled from January to April this year.

Similarly, inflows into global fixed income ETFs also rose steadily from January onwards.

 

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

2 weeks 3 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

3 weeks 3 days ago

So we are now underwriting criminal scams?...

6 months 4 weeks ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

2 weeks 5 days ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

3 weeks 2 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

4 days 12 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
3