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.
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