The ETF provider said the 5.5 per cent growth in the market was driven by new inflows of $300 million and the strong bounce in equity markets in October.
According to BetaShares, inflows to cash ETFs remained strong, with the BetaShares Australian High Interest Cash ETF receiving the highest inflows of all ASX-traded ETFs in October, with $44 million in flows.
October was the first month in the history of Australia’s ETF industry in which the fixed-income category received the highest amount of inflows.
The fixed-income ETF sector received a total inflow of $76 million during the month.
Outflows were mostly limited to global equities as the Australian market outperformed.
BetaShares managing director Alex Vynokur said the growth in ETFs is partly due to the fact that investors consider ETFs a convenient way to access a range of asset classes, including Australian and international equities, fixed income, currencies, and commodities.
“Especially in times of increased volatility, investors are considering incorporating exchange-traded funds as part of constructing more robust, diversified portfolios,” said Mr Vynokur.
