Single-largest ETF trade as insto pulls $1b from iShares fund
The Australian exchange trade fund (ETF) industry saw its single-largest trade in August as an institutional investor withdrew $1 billion from an iShares fund.
In the latest BetaShares monthly ETF report, the firm said funds under management in the industry had been flat during August and ended the month at $130 billion while net new money was $0.6 billion.
However, it did see a large outflow of over $1.1 billion by an institutional investor from the iShares Core S&P ASX 200 ETF.
“It appears as though the vast majority of these outflows came from a single institutional client in what we believe to be the single largest trade in Australian ETF history. Notably, and as testimony to the liquidity of ETFs more generally, this trade occurred seamlessly and without causing any material market impact.”
While outflows were seen for the iShares fund, investors were not averse to Australian equities as the BetaShares Australia 200 ETF, Vanguard Australian Shares Index ETF, SPDR S&P/ASX 50 and Vanguard Australian Shares High Yield ETF were all among the funds with the top inflows.
It was better news for Magellan, which had seen outflows in recent months, as its Core ESG ETF was among the best-performing ETFs during August with returns of 16.7%.
AUTHOR
Laura Dew
Recommended for you
There has been a doubling of interest among Australian investors in investing in ETFs, according to State Street, and the country’s growing interest is a factor driving global growth.
Amid discussions on whether private markets will soon exist in an ETF structure, Global X’s Marc Jocum examines the challenges that could arise from this type of innovation.
Money Management rounds up the financial results for Australia’s listed fund managers.
APAC fund manager Nikko Asset Management has announced its plan to rebrand from September 2025 to a new name that reflects its global growth strategy.
