Investors cautious on ETFs in November
Exchange-traded fund (ETF) investors exhibited more market caution last month amid renewed volatility, according to the latest BetaShares Australian ETF Review.
It said that after two months of relatively strong growth, the November data revealed outflows had reached approximately $40 million while market capitalisation remained steady at $5.2 billion.
It said that while two new ETFs were launched in November to bring the total number of funds to 58, trading values were significantly lower across the board, indicating continued lack of conviction by investors.
Commenting on the data, BetaShares head of investment strategy Drew Corbett said volatility in markets had spooked investors and caused them to reduce existing positions and to defer taking new ones.
"There were large withdrawals of money from Australian equity ETFs and a significant fall in the average daily trading values for ETFs," he said.
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
