Australian ETF industry's FUM up 4%
Funds under management (FUM) across the Australian exchange traded fund (ETF) industry have grown more than 4% in May and stood at $64 billion at the end of the month, the BetaShares Australian ETF Review – May 2020 found.
By comparison, in January Australian ETF market saw funds under management at $66 billion which proved, according to BetaShares, that the Australian ETF industry “staged a V-shaped recovery over the last two months”, with more than half the growth coming from net inflows ($1.6 billion).
Furthermore, in May investors displayed a risky attitude with over $1 billion flowing into equities with Australian and international equities accounting for $666 million and $493 million, respectively, of inflows.
At the same time, in a reversal of trajectory, fixed income exposures attracted $166 million of new money, entirely due to funds flowing into Australian bonds, which totalled $190 million, while global bonds saw an outflow of $24 million, the review found.
The high trading values have continued to be a feature, with $8.2 billion of exchange traded products (ETPs) traded during the month which was the third-highest on record.
BetaShares chief executive, Alex Vynokur, said: “We are seeing a rise in investor confidence as markets continue to recover from the lows hit in mid-March. Investors are using ETFs to increase their exposure to risk assets, particularly domestic and international equities.
“The continued strength in trading volumes is also a big positive for the industry – the last four months have been the four highest trading months on record, indicating that in turbulent times Australian investors are finding the liquidity of ETFs attractive, regardless of whether markets are rising or falling.”
Source: BetaShares
AUTHOR
Oksana Patron
Recommended for you
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
Strong adviser engagement has helped Praemium reach $1 billion in inflows on its Spectrum offering, with a deal with Western Australian wealth firm Euroz Hartleys expected to add as much as $2 billion.
