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
Passive ETFs are seeing stronger flows than their active counterparts despite the proliferation of active launches this year, according to Morningstar.
Former CEO of Global X ETFs Australia, Evan Metcalf, has taken up a new position at a specialist ETF provider.
BlackRock has expanded its iShares fixed-income ETF range, with a global bond fund designed as a ‘building block’ for Australian advisers.
A failure to maintain operations and governance models could prove problematic for private managers in the future as their funds grow in popularity with a retail and wholesale audience.
