Australian ETF industry reaches $38.4bn in May
The Australian exchange-traded fund (ETF) industry has continued its way up and reached $38.4 billion in funds under management (FUM) in May, with over half of new money inflows coming through international equities, according to the BetaShares Australian ETF Review – May 2018.
This category was followed by cash and fixed income, which received $110 million and $64 million respectively.
The industry grew 1.4 per cent in the month ($534 million), 90 per cent of which came from new money inflows, which was a huge contrast from April.
BetaShares chief executive, Alex Vynokur, said it was a positive sign to see a strong month for industry growth, and especially positive to see funds under management at an all-time high.
“Similar to April, investors are still wary of how their assets are allocated, despite an improvement in the markets. Investor sentiment towards Australian equities remains mixed, illustrated by strong inflows into cash and income products,” he said.
At the same time, product innovation in the Australian ETF industry continued to deliver a broad range of investment options.
“As investors experience market volatility, they now have the ability to really get the most from their portfolios. ETFs allow investors to take advantage of a simple way to allocate their assets and ensure they have a diversified portfolio,” he said.
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