Australia’s ETF industry continues to thrive despite the sharemarket decline with $3.9 billion in value traded according to a review by BetaShare.
BetaShare’s October ETF review found the Australian ETF market recorded its highest trading value ever in October with the industry taking in over $700 million in new money.
Sharemarket falls caused the Australian ETF industry to drop 3.2 per cent in October (equating to $1.3 billion), lowering total FUM to $40.8 billion. However, net flows into ETFs were positive, with the industry taking in around $760 million of new money.
For the first time this year, Australian Equities was the largest category for inflows, attracting over $369 million, although this was largely swayed by institutional flows into several broad market local equities products, including BetaShares’ A200 ETF.
This was followed by International Equities, receiving over $164 million.
“We are starting to see a trend emerging, much like the more mature and developed US,” Alex Vynokur, CEO of BetaShares said.
“ETF industry, of Australian investors utilising the liquidity benefits of ETFs during times of market volatility, with ETFs being effective and easy ways to express investment views in such times.”
The top performing products were the three members of the BetaShares Bear product suite. BetaShares US Equities Strong Bear Hedge Fund (BBUS) and BetaShares Australian Equities Strong Bear Hedge Fund (BBOZ) gave the best performances during the month, returning 17.5 per cent and 15.6 per cent respectively.
Net outflows at a category level came from these Short funds, with investors seeking to take profits as the products rallied while markets fell.
Two new products were launched during the month, being the BetaShares Global Income Leaders ETF (ASX: INCM) and a Global Infrastructure ETF, bringing the total number of Exchange Traded Products trading on the ASX to 243.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].