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Rapid growth of the Australian ETF industry continues

 — 1 minute read

November saw the market cap of the local ETF industry reach another high.

The market cap of Australian ETFs rose to $132.8 billion in November, a new all-time high that surpassed the previous record set in October by $5.9 billion.

In its latest Australian ETF Review, BetaShares said that asset value appreciation was the main driver of growth during November, while net flows of $1.9 billion were recorded for the month.

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“Flows this month were heavily concentrated in international equities which contributed over 60 per cent of the month’s flows ($1.2 billion), followed by Australian equities ($665 million) and fixed income ($299 million),” the firm said.

“Outflows came primarily from cash products with investors seemingly rotating back into equities and away from cash given the continuing low interest yields available via cash deposits.”

The BetaShares Australian High Interest Cash ETF (AAA), which was the top ETF by inflows and average daily trading value in October, recorded the most outflows during November with more than $335 million moving out of the ETF.

AAA fell to third position by average daily trading value behind the Vanguard Australian Shares Index ETF (VAS) and the iShares Core S&P/ASX 200 ETF (IOZ), while IOZ received the most inflows for the month with $254.4 million followed by VAS with $174.6 million.

The new BetaShares Crypto Innovators ETF (CRYP) was the third highest ETF by inflows after receiving $159.0 million following its debut in early November.

Six new funds were launched during the month including new active ETFs from Perpetual, Daintree and Talaria and a total of 277 exchange traded products were trading on the ASX.

Monthly trading value for ETFs on the ASX rose by 14 per cent to $9.7 billion, the second highest level on record.

The top performing ETF for the month was the ETFS Semiconductor ETF (SEMI) which surged 17.1 per cent followed by the VanEck Vectors China New Economy ETF (CNEW) which gained 15.3 per cent.

Over the past 12 months, the market cap of Australian ETFs has risen 43.9 per cent or $40.5 billion.

Rapid growth of the Australian ETF industry continues

November saw the market cap of the local ETF industry reach another high.

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Jon Bragg

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.

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