Exchange traded funds in Australia reached a record $24.6 billion in November, driven in part by investors’ reaction to the US election, according to BetaShares.
Industry funds under management (FUM) grew 2.3 per cent through the month, with 70 per cent of that $564 million growth represented by asset appreciation, BetaShares said.
Trading value also reached a record high of $2.5 billion for the month, the company said.
BetaShares managing director Alex Vynokur said the high trading volumes suggested Australian investors were “following the global trend of using exchange traded funds to express their investment views during significant market events”, such as the recent presidential election in the US.
Mr Vynokur also noted that global shares products experienced the highest inflows during November.
“The strong inflows seen in global equities may represent current optimism about Donald Trump’s election as the next US president and its impact on the economy, while the inflows in cash and fixed income suggest investors are concerned for the longer term,” he said.
Australian equities and short exposures both saw the highest outflows Mr Vynokur said, “possibly due to investor profit taking after the recent rally in both categories”.
The $24.6 billion funds under management beats the previous high of $23 billion achieved by the industry in August 2016.