Australian ETF market breaks $8b in AUM
The Australian exchange traded fund (ETF) market has reached $8.25 billion in assets under management, with market capitalisation growing by 8.1 per cent over the month of July, BetaShare’s latest ETF review has found.
Of the $618 million growth over July, new money inflows accounted for $162 million with international equities continuing to be the most popular asset class for ETF investors.
Domestic equities, on the other hand, recorded net outflows, while capital preservation concerns among investors saw cash take second place.
The month of July also saw the launch of two new funds - compared to only one new product launch over the first six months of the year.
With the launch of the first fundamental index ETF and the first currency-hedged international equities ETF, the Australian Securities Exchange now boasts 81 ETF products, according to BetaShares.
“We expect to continue to see a greater level of product launch activity in the second half of the year as the Australian market continues to mature,” BetaShares managing director Alex Vynokur said.
The Australian ETF market has recorded 10 months of record highs, with the first six months of 2013 generating greater inflows than the entire year of 2012.
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Total monthly ETF inflows declined by 28 per cent from highs in November with Vanguard’s $21bn Australian Shares ETF faring worst in outflows.
