ETFs post ongoing record inflows
The exchange-traded funds (ETF) sector has continued to grow for an eighth consecutive month, recording a new level of assets under management and strong net inflows despite falls in the Australian equities market.
The ETF market reached $7.6 billion in assets under management in May, with net inflows increasing 4 per cent to $248 million for that month. At the same time the market cap for ETFs increased by 2.8 per cent to $204 million, according to data released by BetaShares.
ETFs which attracted the most interest were those with international equities exposure, which attracted $150 million of inflows. US dollar ETFs attracted $23 million of inflows as the Australian dollar depreciated against its US counterpart during May. However, gold bullion ETFs had redemptions of $35 million.
High yield products also attracted significant inflows of $100 million, with the record levels of domestic inflows to ETFs reflecting a global inflows trend which reached $26.5 billion in May and more than $100 billion for 2013.
Trading values in ETFs also increased by 50 per cent month-on-month, with 85 ETF products being actively traded on the Australian Stock Exchange.
“The month of May has been another positive month for the Australian exchange-traded fund industry, which once again hit a record high. Local investor appetite is buoyant, with trading value increasing 50 per cent since April,” said BetaShares managing director Alex Vynokur.
Recommended for you
Australian equities manager Datt Capital has built a retail-friendly version of its small-cap strategy for advisers, previously only available for wholesale investors.
The dominance of passive funds is having a knock-on effect on Australia’s M&A environment by creating a less responsive shareholder base, according to law firm Minter Ellison.
Morningstar Australasia is scrapping its controversial use of algorithm-driven Medalist ratings in Australia next year and confirmed all ratings will now be provided by human analysts.
LGT Wealth Management is maintaining a neutral stance on US equities going into 2026 as it is worried whether the hype around AI euphoria will continue.
