ETFs see 150% turnover growth in March



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.”
Recommended for you
ETF investors would be wise to consider global or European exposure for their equity ETF allocations, according to AXA IM, with US government action expected to hit both its equity and bond performance.
A specialist ETF provider is seeking to become “the new Betashares” with its active ETFs, thanks to its use of algorithms to achieve outperformance.
Platinum Asset Management has entered into binding terms for a merger with L1 Capital with the firm to be renamed upon completion
Prime Value Asset Management has launched a retail fund investing in microcap companies, a new version of its existing wholesale offering.