The Australian exchange traded fund industry recorded its largest ever month of growth by value in July, increasing $1.3 billion (7%) to reach a new record high of $19.7 billion in funds under management, according to BetaShares Australian ETF Review – July 2015.
Approximately $700 million (55%) of the industry’s growth over the month came from new money inflows, with the remainder driven by strong equity market growth.
International equities were once again the dominant product category, constituting over 50% of the month’s inflows, with particularly strong flows to emerging markets equities.
Alex Vynokur, Managing Director of BetaShares said: “It is pleasing to see that investor appetite for exchange traded products in Australia is stronger than ever, resulting in the fastest monthly industry growth we’ve experienced to date occurring in July.”
“We’re also seeing Australian investors continuing to embrace exchange traded products as a means to access overseas equities markets,” Mr Vynokur added.
Outflow activity was relatively low through the month, with net outflows restricted to the resources sector and Australian small cap exposures only.
One new product launched in July, taking the total number of new products launched this year to 39.
The top performing products for the month were the global consumer staples sector and the BetaShares Nasdaq 100 ETF (ASX: NDQ).
“With investor take-up of exchange traded products continuing at a rapid pace, we expect further strong growth in the market for the remainder of 2015,” said Mr Vynokur.
Read the BetaShares Australian ETF Review.
Source: BetaShares
