ETFs reach all-time high at $138.5b AUM
The Australian exchange traded fund (ETF) industry’s monthly market cap has increased by $4.7 billion, resulting in $138.5 billion in assets under management (AUM) at the end of January.
In their Australian ETF review, BetaShares revealed that the industry’s $138.5 billion in AUM for January beat the previous all-time record of $136.9 billion set back in December 2021.
This was largely due to net investor inflows pushing the market’s AUM to grow by 3.6%, whilst the global sharemarket overall experienced a rebound effect.
BetaShares attributed the market rally to the bulk of industry growth during January. Only 12% of growth was from net flows, equating to $0.6 billion.
Over the last 12 months, the ETF industry had grown by 5.1% year-on-year, some $6.7 billion.
ASX ETF trading value experienced a 5.1% month-on-month increase with a $7 billion total. The report noted this was a “decent result” given the January summer period was known for being typically lighter.
Three new products were launched on the market during January, with all being active ETFs. Moreover, two new issuers were brought into the industry, those being Milford which released an Australian hedge fund and Alphinity’s launch of two global equity active ETFs.
Despite reservations surrounding the cryptocurrency market due to fluctuations throughout 2022, the top three best-performing ETFs all focused on crypto. Betashares Crypto Innovators ETF was the top-performing product for the month, returning 48%, followed by GlobalX 21Shares Bitcoin ETF and GlobalX 21Shares Ethereum ETF.
In addition, the fixed income category kept its position as the highest receiver of inflows at $233 million, followed by international equities at $169 million.
AUTHOR
Jasmine Siljic
Recommended for you
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
Fund managers are entering 2025 with the most bullish sentiment since August 2021 and record high allocations to US equities, thanks to the incoming Trump administration.
