Betashares’ flagship ETFs surpass $4bn FUM

29 January 2024
| By Jasmine Siljic |
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Betashares’ two flagship exchange-traded funds (ETFs) have hit a new funds under management (FUM) milestone, helped by significant demand for equity exposure.

The Australian fund manager has revealed that its two flagship funds, the Australia 200 ETF and the NASDAQ 100 ETF, have both exceeded $4 billion in FUM this month.

This was helped by both funds collectively receiving $1.4 billion in net flows throughout 2023. The two ETFs are now in the top 10 largest ETFs in the Australian market.

Collective net flows of $8.2 billion last year into Australian and international equities also propelled the Australian ETF industry to reach a record $177.5 billion in FUM by year end.

The ETF industry hit the $170 billion mark in assets under management during November 2023, marking a return to growth after two consecutive months of decline.

Meanwhile, recent research conducted by Betashares and Investment Trends discovered that 53 per cent of ETF investors aim to allocate towards international equities in the next 12 months, up from 42 per cent in 2023.

Some 48 per cent plan to do the same for Australian equities, an increase from 41 per cent in the previous year.

“Australian investors and their financial advisers are increasingly turning to Betashares to help construct diversified and robust portfolios that are well-positioned for long-term wealth creation. Over time we have seen meaningful use of a number of our ETFs as long-term core holdings,” commented Alex Vynokur, Betashares chief executive.

“With market sentiment becoming more receptive to growth assets, we’re already starting to see more investors and their financial advisers add to their equities allocations via ETFs, after showing a clear preference for cash and fixed income ETFs during 2023.”

Last year, Money Management explored the growing popularity of “cash cow” ETFs, which have attracted high inflows as investors flocked towards liquidity and defensive strategies in their investment portfolios.

According to the 2023 Stockspot ETF Report, cash ETFs were one of the largest growing segments of the Australian ETF market last year, with more than $1.6 billion in net inflows received by these products.

“We’ve found that investors are choosing these products for their great returns and because they simply don’t have the same hassle and conditions of a high-interest bank account,” Chris Brycki, Stockspot founder and chief executive, told Money Management.

 

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