ETF FUM reaches new high
The Australian exchange traded fund (ETF) market reached a record high of $10.5 billion in funds under management, according to the latest data released by ETF specialist BetaShares.
The company's Australian ETF Review revealed that approximately $200 million of new money flowed into ETF products in March, with inflows coming almost exclusively from new money rather than existing asset growth.
It noted that total industry market capitalisation increased by 2 per cent over the month and that in a reversal of market trends from previous months, a significant number of investors exited Australian equities, with approximately $40 million flowing out of funds offering these exposures — a sign that investors are cautious about the local equities market.
The report said that the two products experiencing the highest inflows for the month were the Australian High Interest Cash ETF and Equity Yield Maximiser fund, indicating investor demand for defensive and high-yielding strategies.
Commenting on the latest data, BeaSharse managing director Alex Vynokur said that although last month's flows indicated that investors were showing some caution in regard to the Australian equities market, due to the variety of strategies available via exchange traded products, investors had been able to continue to express their investment views beyond simple broad-based equities exposures.
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