New money 'driving' ETF industry

New money 'driving' ETF industry

The Australian exchange-traded fund industry has seen its 15th straight month of positive growth, reaching a high of $17.7 billion in funds under management in April, says BetaShares.


According to the BetaShares Australian ETF Review for April 2015, the month’s industry growth has come from new money inflows – approximately $473.8 million – which have offset negative movements in global stock markets.

BetaShares managing director Alex Vynokur said: “New money is driving sector growth at the moment, as an increasing number of investors embrace ETFs and the cost, transparency and liquidity benefits they offer.”

“We are confident that the rate of growth we are seeing at the moment should continue in the market for some time, with combined drivers of growth coming from advisers and SMSF investors.”  

In terms of product categories, inflows were highest in broad Australian equities and developed international equities, particularly European equities, the report found.

“In the last 12 months we have seen the market capitalisation growth of the ETF industry increase by almost $7 billion, an increase of 61 per cent.

“We have also seen monthly trading value rise to over $2 billion for the first time,” Mr Vynokur said.

The average trading value for the industry peaked at $2.1 billion, up from $1.9 billion in March, the report found.

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