The Australian ETF market sector has reached a record high for funds under management, according to new data released by the ASX.
Total funds under management for exchange-traded products reached $23.16 billion, up from $21.80 billion in April, according to the ASX's May Managed Funds Report.
BetaShares managing director Alex Vynokur said rallies in the Australian and global share markets have been key drivers of this growth, with an influx of more than $410 million in new money.
“The May rally contributed to significant funds under management growth in addition to the trading volume which increased 23 per cent on the previous month,” he said.
Equity still comprised a majority of ETF asset spread, with the combined Australian/global equity investment comprising close to 80 per cent of the ETF industry funds under management.
Broad Australian equities also received the highest inflows this month, reaching $300 million, a significant increase on last month’s $768,000.
Global equity and Australian property asset spreads also saw significant change in funds under management this month.