Average ETF trade value down
The average value of exchange traded fund (EFT) transactions fell by 22 per cent month on month in September, after a 23 per cent rise in value in August, research reveals.
Despite the fall in average trade values, the market saw a $200 million increase in funds under management (FUM), having fallen to $19 billion in August from a record high of $19.7 billion in July, the BetaShares Australian ETF Review for the month ending September 2015 found.
BetaShares managing director, Alex Vynokur, said, "Global market volatility was not enough to dampen the appetite for exchange traded products in September".
"The positive net inflows means Australian investors are increasingly using these products to mitigate against falling markets, in addition to taking advantage of rising markets," he said.
"There was again strong appetite for our Bear Funds throughout the month, as investors sought a simple way to protect against falls in Australian and US share markets."
Net outflow activity by category was low throughout September, and solely confined to outflows in commodities.
One new product was launched in September, taking the total number of new products launched this year to 42, compared with 12 new products launched in total in 2014.
Recommended for you
AUSIEX has announced it will acquire FIIG, a specialist fixed income provider with $4.5 billion in funds under advice.
Platinum Asset Management has announced it is in discussions with a global alternatives fund manager regarding a possible merger to create an $18 billion firm.
Frontier Advisors has bolstered its Japanese footprint through a partnership with the $350 billion asset management arm of Nippon Life Insurance Company.
JP Morgan Asset Management has appointed an ETF specialist from Vanguard as it seeks to expand its ETF range.
