ETF industry drops in value in April


The Australian exchange traded fund (ETF) industry has shrunk by $1.9 billion, some 1.4%, in April, representing the third month out of four in 2022 in which the industry has declined.
Reflecting falls in global sharemarkets, the Australian ETF industry ended April at $133.5 billion, but investors continued to allocate with net flows of $1.2 billion, on par with March inflows of $1.3 billion.
“The Easter period and overall investor caution caused trading values to plummet to levels not seen in the last 11 months, representing a fall of 35% [$7.5 billion in total],” the report noted.
Over the last 12 months, the Australian ETF industry grew by 23% for a net total of $24.7 billion.
In terms of category flows, the industry flows were very similar to those recorded in March, with international equities continuing to see the lion’s share inflows ($513 million) followed by broad Australian equities ($299 million).
“We saw some profit taking in short exposures which experienced strong positive performance as sharemarkets fell.”
Source: BetaShares
Recommended for you
The alternative investment manager has signalled its intentions to repackage an existing fund into a second private equity vehicle, targeting both listed and unlisted opportunities.
The acquisition of Mason Stevens by Adamantem Capital has reached completion, as the wealth platform looks to increase investment into its services for Australian wealth practices.
Platinum Asset Management and VanEck have both announced name changes to multiple of their ETFs to clarify their complexity.
Active ETFs are gaining traction in Asia-Pacific as wealth managers seek to blend the low-cost fees of passive with active management.