This represents a 40 per cent increase from the previous month and a 128 per cent increase from the same period last year.
BetaShares managing director Alex Vynokur said the results demonstrate how investors were using ETFs for both tactical and strategic purposes rather than just for long-term ‘buy and hold’ investments.
In addition to the record trading figures in August, the industry also reached $8.71 billion in assets under management, a new record for the 11th consecutive month. The $456 million increase was a result of structural industry growth rather than market capitalisation growth.
With the August figure falling just short of the predicted figure for the year, Mr Vynokur said BetaShares now expects the Australian market to finish the year at $10 billion.
The developed international equities segment experienced the highest level of inflows, with investors optimistic about the US economic recovery. However, a considerable increase of inflows into other developed markets showed that investors were also confident about recoveries in regions such as Europe.
“As evidenced by this month’s inflows and trading values, we’re clearly seeing an increasing amount of activity supporting the economic recovery in developed markets with a tilt towards the US and Europe,” said Mr Vynokur.
Australian high-yield equities products were also a strong focus for investors, with a combined $85 million of new inflows.
Gold also had a strong performance, indicating that investors could be wary about quantitative easing potentially ending in the United States.
“Gold continues to be out of favour with investors but has actually been one of the best performing asset classes on the ASX for the last two months, continuing to reverse the April price slide,” Mr Vynokur said.
