Guess How Much The Australian ETF Industry Is Now Worth?

0
Guess How Much The Australian ETF Industry Is Now Worth?

The value of the exchange traded fund (ETF) industry has surged past $70 billion for the first time, extending its strong growth run.

A report from BetaShares highlights the 45% compound annual growth rate in the value of the Australian ETF industry since inception in 2001, compared to the 11% per annum growth in the value of the listed investment companies (LIC) and listed investment trusts (LIT) industry. The Australian ETF industry is now around $25 billion bigger than the LIC/LIT industry at the end of August.

Australian ETF industry vs. LIC/LIT industry

australian etf

Source: BetaShares

BetaShares reported that growth over August arose from an equal share of market movements and net new money. Industry funds under management (FUM) grew by $3.6bn, a 5.3% month-on-month increase.

There were 243 Exchange Traded Products trading on the ASX and Chi-X with one new product launching in August, a ESG-light product launched by State Street. Two single bond products matured in the month.

The report noted that flows were robust across a number of asset class categories, with international equities exposures dominating ($722m net flows). Investors however continued to diversify their portfolios away from equities with ~$370m into fixed income products and ~$200m into both cash and commodities ETFs (largely gold products). Outflows were limited to US Dollar products even as the USD fell in value vs. the AUD, with investors apparently concerned that continued AUD strength is possible.

Top 5 category inflows (by $) – August 2020

Category

Inflow Value

International Equities $722,208,857
Fixed Income $367,232,015
Cash $208,414,985
Commodities $187,614,011
Australian Equities $181,104,769

 

Top sub-category inflows (by $) – August 2020

Sub-Category

Inflow Value

Australian Bonds $297,832,585
International Equities – Developed World $242,528,414
International Equities – Sector $223,785,466
Cash $208,414,985
Gold $171,774,547

The top two issuers to the end of August were BetaShares and Vanguard, combined receiving over 60 per cent of all industry flows.

 

Previous article Check Yourself Before You Wreck Yourself
Next article Don’t Ban Investors, Educate Them
Brenton Gibbs
Editorial and Social Media Manager
Brenton is the editorial and social media director of Fixed Income News Australia and responsible for the editorial content development and social media presence of the site. He has written widely across a number of industry platforms including property, tourism, business and education. He is a director and co-founder of communications, content and creative agency RGC Media & Mktng and editorial contributor to MBA News Australia.

LEAVE A COMMENT

Please enter your comment!
Please enter your name here