September breaks ETF records
In a month where both global and Australian equities fell, exchange traded funds (ETF) investors “bought the dip”, with the industry recording its highest monthly net inflows in September, according to BetaShares.
The firm’s September ‘Australian ETF Review’ report found there was inflows of $2.9 billion into the industry, breaking the previous level set in July by $200 million.
But the high level of flows managed to offset the asset value declines, causing the Australian ETF industry to grow only slightly to a new high of $125.3 billion in funds under management.
And the industry grew by around $54 billion over the last 12 months, a growth of 76%.
Monthly trading value remained high, increasing 4% month on month, with over $9 billion of trading activity, matching the trading value seen in the spike of March 2020.
BetaShares took the crown in terms of monthly net inflows by issuer, breaking the all-time monthly record for the industry with $1.14 billion, beating Vanguard by about $100 million.
According to Betashares, the mix of inflows was more mixed than the pattern observes in the year so far, with Australian and international equities receiving about the same amount.
The ETF provider also said September saw a “return to meaningful flows from cash and fixed income” with $382 million coming from the former and $333 million coming from the latter.
“The compositions of the industry’s flows illustrates the extent to which ETFs are able to help investors diversify their portfolios across all major asset classes,” it said.
AUTHOR
Liam Cormican
Recommended for you
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
Strong adviser engagement has helped Praemium reach $1 billion in inflows on its Spectrum offering, with a deal with Western Australian wealth firm Euroz Hartleys expected to add as much as $2 billion.
