ETFs see 150% turnover growth in March

14 April 2020
| By Laura Dew |
image
image
expand image

Exchange traded funds (ETFs) trading volumes hit an all-time high of $18 billion in turnover in March, more than double its previous record, according to BetaShares. 

ETF trades on the Australian Securities Exchange (ASX) were $18 billion during March, beating the record held in February which was $7.2 billion. 

This growth came despite funds under management declining by $6.8 billion in line with falling equity markets, with the sector ending the month with funds under management of $57.2 billion. This equated to net positive inflows of $522 million. 

The most popular vehicles were broad Australian equities products which received $1.1 billion in net inflows while fixed income and cash vehicles were sold down. Hedged international products also saw positive flows, reflecting the weakness in the Australian dollar. 

BetaShares said its Australian Equities Strong Bear Hedge fund, a fund that seeks to generate returns which are negatively correlated with the Australian stockmarket, accounted for $2 billion of monthly trading value and was one of the strongest-performing funds during the month. 

BetaShares chief executive, Alex Vynokur, said: “During this challenging period, the extraordinary rise in ETF trading volumes indicates that Australian investors are increasingly turning to ETFs to express their investment views, suggesting that the liquidity of ETFs is proving attractive amidst some of the most intense volatility in recent history.” 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 2 weeks ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 2 weeks ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 6 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....

1 day 4 hours ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 4 days ago