Australian ETF Industry Blasts Beyond $100B

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Australian ETF Industry Blasts Beyond $100B

The Australian ETF industry has catapulted beyond $100 billion in funds under management for the first time after a strong month for growth.

BetaShares’ ETF review for March shows the ASX exchange traded product market cap hit $102.9 billion at the end of march, representing a market cap change of 5.7% ($5.6 billion) for the month.

The market cap growth for the last 12 months was 80% – an all time high and the fastest yearly growth on record.

The company said in its report that the Australian ETF industry’s growth in March was driven by a combination of asset price appreciation, a large unlisted fund conversion and solid net flows.

Also read: Understanding ETF Liquidity

Seven new products were launched in March, including BetaShares Climate Change Innovation ETF (ASX: ERTH), bringing the total number of ETF products being trading on the ASX and Chi-X to 265.

ASX ETF trading value declined slightly by 5% month on month, but Betashares noted it it remained above the $7 billion mark.

Top 5 category inflows (by $) – March 2021

Category Inflow Value
Australian Equities $618,968,086
International Equities $618,780,900
Fixed Income $124,550,233
Multi-Asset $102,665,834
Australian Listed Property $47,209,907

Betashare’s report said equities once again led the way for inflows and March experienced an even split of interest in Australian Equities ($618m of flows) and Global Equities ($618m).

Top sub-category inflows (by $) – March 2021

Sub-Category Inflow Value
Australian Equities – Broad $520,874,507
International Equities – Sector $189,108,519
International Equities – Developed World $137,404,235
Multi-Asset $102,665,834
International Equities – Emerging Markets $97,862,805

With the $100 billion milestone passed, Betashares has revised its forecast for the industry’s growth for the remainder of 2021.

“We believe the industry will grow a further 25% over the rest of the year amid strong investor demand to end the year at ~$125B,” the company said in its report.

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