Strong Fixed Income ETF Flows As Sharemarkets Continue To Rise

Strong Fixed Income ETF Flows As Sharemarkets Continue To Rise

BetaShares’ latest review shows the Australian ETF industry continues to grow and reached yet another new record high of $97.3B at the end of February.

The company said in its report: “The industry’s market cap grew by a relatively subdued 0.5% for the month to reach a new record high of $97.3B.

“Industry growth over the last 12 months has been 52%, representing absolute growth of $33B over this period.

“With volatility back in February, we saw a significant rise in trading value, which grew 45% month on month.

“International equities once again led the way for inflows ($830m of net flows). Bonds, with Australian bonds in particular, were the second biggest category, albeit a significantly smaller levels than equities ($260m of flows).”

Top 5 category inflows (by $) – February 2021

Category Inflow Value
International Equities $829,019,934
Fixed Income $259,047,204
Australian Equities $169,721,554
Multi-Asset $114,387,359
Australian Listed Property $65,939,351

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

Sub-Category Inflow Value
International Equities – Developed World $317,752,722
International Equities – Sector $238,485,736
Australian Bonds $185,780,998
International Equities – Asia $128,620,232
>Multi-Asset $114,387,359

BetaShares noted outflows from commodities products included profit taking by investors in oil exposures.

The report also highlighted a 200% growth growth in ethical and sustainable ETFs and there are now 18 ethical/sustainable products available and approximately $3B in assets.

There were 258 Exchange Traded Products trading on the ASX and Chi-X with no new product launches or closures.