ETFs post ongoing record inflows
The exchange-traded funds (ETF) sector has continued to grow for an eighth consecutive month, recording a new level of assets under management and strong net inflows despite falls in the Australian equities market.
The ETF market reached $7.6 billion in assets under management in May, with net inflows increasing 4 per cent to $248 million for that month. At the same time the market cap for ETFs increased by 2.8 per cent to $204 million, according to data released by BetaShares.
ETFs which attracted the most interest were those with international equities exposure, which attracted $150 million of inflows. US dollar ETFs attracted $23 million of inflows as the Australian dollar depreciated against its US counterpart during May. However, gold bullion ETFs had redemptions of $35 million.
High yield products also attracted significant inflows of $100 million, with the record levels of domestic inflows to ETFs reflecting a global inflows trend which reached $26.5 billion in May and more than $100 billion for 2013.
Trading values in ETFs also increased by 50 per cent month-on-month, with 85 ETF products being actively traded on the Australian Stock Exchange.
“The month of May has been another positive month for the Australian exchange-traded fund industry, which once again hit a record high. Local investor appetite is buoyant, with trading value increasing 50 per cent since April,” said BetaShares managing director Alex Vynokur.
Recommended for you
Perpetual has announced new global leadership appointments to its asset management division, including a hire from State Street Global Advisors, as it prepares to separate into a standalone business.
Betashares’ latest fund will seek to invest fully in an ethically screened portfolio of Australian corporate and government bonds.
GQG Partners has reported a decrease in its funds under management as at 31 October, its first fall since October last year.
Stockspot analysis has named the top 10 suburbs across Australia that have the highest proportion of sustainable investors, largely dominated by one state in particular.
