Fixed Income Records Highest Level of Flows

Fixed Income Records Highest Level of Flows

Betashares latest monthly Australian Exchange Traded Fund Review shows another month of growth for the Australian ETF industry in November with fixed income ETFs recording the biggest inflows.

Industry assets under management grew 3.4% to end the month at $136 billion. This was mostly from market growth with $1.1 billion attributed to net flows.

Fixed income ETFs had the highest volume of flows at $333 million with “investors perceiving the worst may be over for further yield increases”. This was up from $308 million in October. This was closely followed by $330 million into Australian equities but this was a notable drop from October when the sector saw inflows of $417 million.

Australian bonds saw $173.6 million in inflows and global bonds saw $153.7 million.

Also read: Cboe Australia, XTB Expand Access To Corporate Bond Products 

This included $46.6 million into BetaShares Australian Govt Bond ETF and $45.5 million into Global X US Treasury Bond ETF.

“Fixed income was the asset class category recording the highest level of flows this month ($333 million in net flows) with investors increasingly perceiving that ‘the worst may be over’ for further yield increases,” said BetaShares chief commercial officer Ilan Israelstam.

This was followed by Australian equities ($330 million), international equities ($167 million), listed property ($156 million) and short ETFs ($95 million). Meanwhile, the top categories by outflows were commodities ($24 million), cash ($19 million) and currency ($3 million).