ETFs reach all-time high at $138.5b AUM
The Australian exchange traded fund (ETF) industry’s monthly market cap has increased by $4.7 billion, resulting in $138.5 billion in assets under management (AUM) at the end of January.
In their Australian ETF review, BetaShares revealed that the industry’s $138.5 billion in AUM for January beat the previous all-time record of $136.9 billion set back in December 2021.
This was largely due to net investor inflows pushing the market’s AUM to grow by 3.6%, whilst the global sharemarket overall experienced a rebound effect.
BetaShares attributed the market rally to the bulk of industry growth during January. Only 12% of growth was from net flows, equating to $0.6 billion.
Over the last 12 months, the ETF industry had grown by 5.1% year-on-year, some $6.7 billion.
ASX ETF trading value experienced a 5.1% month-on-month increase with a $7 billion total. The report noted this was a “decent result” given the January summer period was known for being typically lighter.
Three new products were launched on the market during January, with all being active ETFs. Moreover, two new issuers were brought into the industry, those being Milford which released an Australian hedge fund and Alphinity’s launch of two global equity active ETFs.
Despite reservations surrounding the cryptocurrency market due to fluctuations throughout 2022, the top three best-performing ETFs all focused on crypto. Betashares Crypto Innovators ETF was the top-performing product for the month, returning 48%, followed by GlobalX 21Shares Bitcoin ETF and GlobalX 21Shares Ethereum ETF.
In addition, the fixed income category kept its position as the highest receiver of inflows at $233 million, followed by international equities at $169 million.
AUTHOR
Jasmine Siljic
Recommended for you
Australian and New Zealand sustainable funds saw outflows of more than $1.2 billion in the second quarter of 2024, according to Morningstar, with active strategies accounting for the majority.
Maple-Brown Abbott has finalised an agreement to be acquired by a rival fund manager to create a firm with $18.6 billion in assets under management, just two months after its former CEO exited to lead Magellan.
Following a strategic review, Platinum has announced it will merge its two listed investment companies with two of its quoted managed hedge funds.
With potential US interest rate cuts on the horizon, Income Asset Management believes now is an ideal time to be investing into the corporate bond market.
Add new comment