Trading numbers reveal bearish outlook
Investors are increasingly positioning their portfolios for a potential pullback in the share market, despite Australian equities trading near six year highs, according to Betashares.
The data reveals the average daily value traded of the firm's inverse Australian equities fund, had increased by 40 per cent last month. The fund is traded on the ASX and is designed to obtain returns that are negatively correlated to the Australian share market.
The increased trading in the shorted fund may indicate cautious sentiment amongst segments in the Australian investor community, BetaShares managing director Alex Vynokur said.
He said this seems to reveal an undercurrent of nervousness in the domestic equities market following the federal budget announcement and its impact on consumer confidence.
Additionally mixed economic signals from international markets are contributing to the bearish outlook.
"We have had a continual stream of mixed data from key economies such as the United States, Europe and China which is causing investors to consider protecting their portfolios from downside risk," Vynokur said.
Recommended for you
The merger with L1 Capital will “inject new life” into Platinum, Morningstar believes, but is unlikely to boost Platinum’s declining funds under management.
More than half of the top 20 most popular shares bought by advised investors during the first half of 2025 were ETFs, according to AUSIEX data.
At least two-thirds of ETF flows are understood to be driven by intermediaries, according to Global X, as net flows into Australian ETFs spike 97 per cent in the first half of 2025.
Inflows for the first half of 2025 for GQG Partners stand at US$8 billion, but the firm has flagged fund underperformance could be a headwind for future flows.
