ETF industry hits all-time high

ETF BetaShares exchange traded funds

12 May 2016
| By Oksana Patron |
image
image
expand image

The Australian exchange traded fund industry reached $21.9 billion in total funds under management (FUM) in April, establishing a new record, according to the BetaShares Australian Exchange Traded Funds (ETFs) Review.

The total FUM, which increased by $516 million or 2.4% month-on-month, was fuelled largely by new money ($274 million) and by a growth in asset value.

While broad Australian equities and fixed income products received the highest level of inflows, short exposures also saw the significant inflows driven by investors looking to hedge their US and Australian equities investments.

The only outflows in April were in unhedged gold exposures, with Australian investors seeking to take profit following the rally in gold prices earlier this year. Additionally, the commodities-related exposures, in particular gold-miners, silver and crude oil, also recorded a strong performance.

BetaShares managing director, Alex Vynokur, said the investors were "still cautious" and wanted to "protect their portfolios from risk of declines using exchange traded products such as the Bear Funds".

"While diversification remains the primary reason investors use ETFs, the growth trajectory of the ETF market in Australia tells us that ETFs are being used to cover a full suite of assets classes and strategy exposures,"

"We expect the ETF industry to continue to evolve in the coming months, providing investors even more ways to harness ETFs to suit their investment goals," he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

2 days 10 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

6 days 16 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 4 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 6 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

5 days 14 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

4 days 17 hours ago