ETF market breaks through $9 billion mark
The Australian exchange traded fund (ETF) market has broken through $9 billion in assets under management, reaching a record high of $9.3 billion, according to BetaShares' October ETF review.
The industry's market cap grew 5.3 per cent in October, including $256 million of net new money flowing into the market.
Investors remained bullish on international equities this month, with US and European equities products among the top 10 in terms of inflows.
Equity yield products and the high interest cash ETF was included in the top 10 products for inflows, indicating the search for yield continues to be a strong theme.
"This month's inflows suggest investors are improving their outlook on global equities, as the US market rallied following the resolution of the government shutdown, and with European markets also recording moderate gains," BetaShares managing director Alex Vynokur said.
Local market and Australian dollar sentiment also improved as the BEAR fund saw net redemptions for the first time since April this year.
The BetaShares Financials Sector ETF was the best-performing product for the month.
"Overall, with two months to go until the end of the year, it looks as though the ETF industry will reach its $10 billion milestone. An increasing number of investors are continuing to embrace ETFs for a wide variety of investment strategies and uses," Vynokur said.
The US dollar and the Euro ETFs experienced outflows as investors rotated from just foreign currency exposures to foreign equity market exposures again, implying renewed optimism in the global equity markets.
Recommended for you
Two former senior Global X employees have launched their own ETF provider, ETF Shares, focused on offering index ETFs for advisers and retail investors.
With GCQ Funds Management and Lakehouse Capital making their recent ETF debuts, the two fund managers unpack why financial advisers are essential to their respective launches.
ETF provider Global X is set to launch its latest ETF, focused on artificial intelligence infrastructure.
Index provider MSCI has unveiled two measures to make it easier for financial advisers and wealth managers to access transparent insights into private assets.
