Australian ETFs record high in November
The Australian exchange traded fund (ETF) industry reached a record high of $24.6 billion funds under management (FUM) in November, helped by investors' positive response to the US election, according to the BetaShares Australian ETF Review.
The industry also hit another milestone in terms of the highest monthly traded value for the industry on record, achieving $2.5 billion in trading value.
The industry FUM grew by 2.3 per cent or by $564 million in November, with asset value appreciation representing 70 per cent of the growth.
According to BetaShares' managing director, Alex Vynokur, this proved that Australian investors had followed the global trend and used ETFs to express their investment events during significant market events.
"The strong inflows seen in global equities may represent current optimism about Donald Trump's election as the next US president and its impact on the economy, while the inflows in cash and fixed income suggest investors are concerned for the longer term," he said.
"The outflows from Australian equities and currency exposures (mainly in USD) are possibly due to investor profit taking after the recent rally in both categories."
BetaShares noted that the highest inflows were in global shares products, cash and fixed income and the highest outflows were seen in currencies, short exposures and Australian equities.
AUTHOR
Oksana Patron
Recommended for you
Betashares chief executive, Alex Vynokur, has said that the firm is focused on financial advisers “more than ever” as it grows the business, having announced a merger with managed account provider InvestSense.
L1 Capital has confirmed it intends to vote against the conversion of the Platinum Capital LIC into a listed ETF, meaning the deal “has a high probability of failing” due to L1’s substantial shareholding.
Pinnacle Investment Management has continued its focus on international expansion with the appointment of a managing director from T. Rowe Price.
Financial research firm Wealth Data, which publishes the weekly financial adviser numbers, has been sold to fintech firm Padua Solutions.
