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ETF sector soars by $3bn

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By Reporter
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2 minute read

The Australian ETF sector received almost $3 billion in flows during July as investors increased their interest in international equities trading in particular, according to new figures.

The Betashares Australian ETF Review for July indicated that the ETF industry broke its record for monthly inflows, receiving $2.8 billion from investors during July.

The ETF sector’s total market capitalisation rose 2.6 per cent over the month to $118.8 billion, with growth of 77 per cent during the 12 months to July, the highest 12-month increase in the industry’s history.

Around 90 per cent of growth came from new money flows into the sector, with just 10 per cent coming from asset value appreciation.

The COVID-driven surge in share trading continued to buoy inflows to the market, with monthly trading value increasing 17 per cent and over $8 billion of trading activity recorded on the ASX in July.

The top product category for inflows was international equities, which received $1.6 billion over the month, four times the amount of flows received by the next most popular category, Australian equities.

Meanwhile, the best performing product categories during July were healthcare, cyber security and Australian resources.

Magellan’s global active ETF remained the top fund by market cap with $14 billion, followed by Vanguard’s Australian Shares Index ETF with $9 billion market cap and iShares S&P 500 ETF with $4 billion.

The most traded ETF in July was Vanguard’s Australian Shares Index ETF, followed by iShares’ Core ASX 200 ETF and Vanguard’s MSCI Index International Shares ETF.