ETF growth continues
The Australian market for exchange-traded funds (ETFs) continues to grow, according to BetaShares' April review which points to funds under management just shy of the recorded high of $5.45 billion.
According to BetaShares, growth had been slow during April, with approximately $7 million of new money entering the market. And where March's standout had been international equities, the top performers for the month of April had been property securities and Palladium.
Drew Corbett, head of investment strategy at BetaShares said that the shift continued to develop a trend of gradual switching between competing ETF products as investors conducted their due diligence and looked for similar beta exposures at lower costs.
"We are continuing to see gradual shifts in funds across competing products, not just for broad market exposures but across commodities and dividend ETFs," he said.
"This has been the same experience in overseas ETF markets and is a sign of investor engagement and awareness."
BetaShares stated that April also marked the first full month of trading in fixed income ETFs and while inflows had started slowly, the expectation was that they would increase as investors became more familiar with the asset class.
"While the beginnings for fixed income ETFs have been humble, we expect the adoption of this new category and other yield products to help drive growth in the ETF industry," said Corbett.
"Finally we are encouraged by a steady increase in trading values which points to a positive sentiment and increased activity during the second half of 2012," he said.
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