ETF inflows almost double 2024 pace
Global X analysis has revealed the Australian ETF market has grown by more than a third in the past year, driven by net inflows, which are almost double the pace of 2024.
As of 31 August, the ETF provider said net inflows were $32.5 billion since the start of the year, which resulted in ETF market growth of 35.9 per cent. Total inflows over the last 12 months stood at $45.8 billion.
August saw the Australian ETF market grow by some $10.2 billion (3.5 per cent) to $299.4 billion across 433 products, including six new ETFs launched in August.
As the market continues this momentum, Global X is predicting a “blockbuster finish” for the year as the strong momentum continues, with potential annual inflows reaching as high as $50 billion.
“As we approach year-end, the usual seasonality of stronger ETF buying momentum is starting to take shape. August delivered solid gains and the market now looks on track for a blockbuster finish with inflows potentially racing toward the $40-50 billion range – well above last year’s $31 billion milestone,” it said.
Looking at asset class performance, broad-based global shares ETF saw the highest inflows for August by a large majority with $730 million in inflows, followed by broad Australian shares and US global shares, both of which attracted $415 million.
“Rising expectations for US rate cuts kept risk-on sentiment firm, prompting investors to allocate to low-cost, vanilla global share ETFs targeting developed markets. US equity ETFs also drew strong demand, likely bolstered by the same catalysts,” the report said.
However, taking a longer lens saw broad Australian shares rake in the most inflows for the year to date as at 31 August, capturing $4.7 billion over this period. This was closely followed by broad global shares ($4.7 billion), while US global shares saw just $2 billion in inflows over this time.
At the other end of the scale, leveraged Australian shares saw the greatest outflows for August, losing some $42 million, making up the bulk of losses for this asset class over the year to 31 August, with a total reported loss of $47 million. According to Global X, losses in this sector were likely driven by profit-taking after a headline-heavy earning season.
AUTHOR
Shy-Ann Arkinstall
Recommended for you
Shareholders at Platinum Asset Management have voted on the decision to merge the firm with L1 Capital, creating a $16.5 billion combined fund manager.
Investment manager Woodbridge Capital has appointed Ben Evans as executive director, origination, joining the firm from Metrics Credit Partners.
Revolution Asset Management has listed its Private Credit Income Trust on the ASX today, offering retail access to Australian and New Zealand private credit.
Northern Trust Asset Management has appointed Anwiti Bahuguna as global co-chief investment officer to succeed Michael Hunstad, who was recently named president of the firm.
