Strong ASX performance prompts flight to Aussie ETFs
Selfwealth has shared the top 10 traded exchange traded funds (ETFs) in November as the ETF landscape reaches $170 billion.
November was a strong month with the ASX 200 reporting 4.5 per cent during the period, and this was reflected in the trading choices of investors. They were also more confident that rate rises from the Reserve Bank of Australia could be approaching their peak.
Five Australian ETFs were among the top 10: Vanguard Australian Shares Index in first place, Betashares Australia 200, Betashares Geared Australian Equity, Betashares Australian Equities Strong Bear Hedge and Vanguard Australian Shares High Yield ETF.
Vanguard’s Australian Shares Index is the largest ETF in Australia by market cap at $13.1 billion. Since the start of 2023, it has returned 4.52 per cent versus a benchmark return of the ASX 300 index of 4.58 per cent.
Robert Marfell, brand and content lead at Selfwealth, said: “The presence of many shorting ETFs in November’s most-traded data indicate some investors weren’t 100 per cent sold on December’s now apparent Santa rally.
“Looking at Selfwealth’s generational data, most shorting activity comes from older cohorts with investors who most likely have broad sector expertise. The younger generations tend to opt for market staples like large index-tracking funds from Vanguard, Betashares and iShares.”
Rounding out the top 10 are Vanguard MSCI Index International Shares, iShares Core S&P 500, Betashares NASDAQ 100, Vanguard US Total Market Shares and Betashares Diversified All Growth ETF.
Earlier this month, Betashares found Australian equities ETFs were the second-most popular asset class in November with $600 million of net inflows, although international equities had the most inflows at $955 million. This was a departure from previous months when bond ETFs held top spot.
Overall net inflows of $2.1 billion were recorded in November, equalling the second-highest level of net flows in 2023 to date with $2.2 billion recorded in August.
AUTHOR
Laura Dew
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.
