Australian ETF industry breaks record in November
The Australian exchange traded fund (ETF) industry has grown by more than $2 billion in November, breaking industry records for net inflows, industry growth and value traded, according to BetaShares’s study.
Total funds under management (FUM) reached $35.5 billion and represented a significant growth rate of six per cent for the month.
The BetaShares Australian ETF Review – November 2017 also found that net inflows accounted for the majority of FUM growth for the month ($1.3 billion), with asset value appreciation adding the remaining $700 million to the monthly increase.
As far as products were concerned, November saw a launch of a total six new products, with the best performing funds being those based around global and US equities which continued to outperform Australian equities.
BetaShares’ managing director, Alex Vynokur said: “The growth across all metrics in the ETF industry is impressive.”
“The increased demand we’re currently seeing can likely be attributed to the core benefits offered by ETFs to investors – cost-effectiveness, access, transparency and liquidity.
“Although institutional adoption of ETFs has been slower than with the retail market, we are seeing more Australian institutions adopting ETFs as part of their investment portfolio.
“As such, we expect mega-trades like this to start becoming increasingly common in our market.”
AUTHOR
Oksana Patron
Recommended for you
Pinnacle’s London affiliate, Life Cycle Investment Partners, has secured over $15 billion in FUM in its first year and achieved profitability, the firm’s fastest affiliate to do so.
For foreign fund managers looking to come to Australia, a financial services law firm has shared which regulatory option offers them the quickest pathway?
Betashares has partnered with a US fund manager to form a private capital division aimed at providing financial advisers and wholesale clients with private markets investments.
GQG Partners has lost over US$1 billion from an institutional client, contributing to FUM falling by US$6 billion in July, as it flags fund underperformance could lead to continued outflows.
