Australian ETFs record high in November
The Australian exchange traded fund (ETF) industry reached a record high of $24.6 billion funds under management (FUM) in November, helped by investors' positive response to the US election, according to the BetaShares Australian ETF Review.
The industry also hit another milestone in terms of the highest monthly traded value for the industry on record, achieving $2.5 billion in trading value.
The industry FUM grew by 2.3 per cent or by $564 million in November, with asset value appreciation representing 70 per cent of the growth.
According to BetaShares' managing director, Alex Vynokur, this proved that Australian investors had followed the global trend and used ETFs to express their investment events during significant market events.
"The strong inflows seen in global equities may represent current optimism about Donald Trump's election as the next US president and its impact on the economy, while the inflows in cash and fixed income suggest investors are concerned for the longer term," he said.
"The outflows from Australian equities and currency exposures (mainly in USD) are possibly due to investor profit taking after the recent rally in both categories."
BetaShares noted that the highest inflows were in global shares products, cash and fixed income and the highest outflows were seen in currencies, short exposures and Australian equities.
AUTHOR
Oksana Patron
Recommended for you
The $673 billion global investment manager has appointed a former Zenith sales head as it seeks to expand its reach in the Australian wealth management market.
Fund managers may be operating in a squeezed environment, but a salary guide shows they are willing to pay up for specialist talent to diversify their fund range.
Reach Alternative Investments has entered into a strategic partnership with Russell Investments to bolster its wholesale private markets offering for financial advisers and investors.
Boutique investment consulting and research house Genium Investment Partners has announced a senior appointment to drive further growth in its research ratings business.
