The Australian exchange traded fund (ETF) industry growth moderated at $24.1 billion in funds under management (FUM) in October, as global and Australian share markets fell, according to the BetaShares Australian ETF Review – October 2016.

The industry showed its resilience as net inflows remained strong, increasing to $629 million in October (September net inflows: $580 million).

Broad Australian equities exposures again received the highest inflows, with net inflows of $274 million, in line with the trend observed in September. International Equities and Australian Fixed Income categories also captured new money, with net inflows of $103 million and $98 million, respectively.

Outflows were limited with only minor redemptions in short exposures.

BetaShares Managing Director, Alex Vynokur, said: “It’s a testament to the strength of the Australian ETF industry to see continued, significant levels of net inflows, even in a period of local and global market declines.”

Product development surged in October, with 15 new funds launched including the BetaShares Australian Ex-20 Portfolio Diversifier ETF (ASX: EX20), four new factor products from iShares and 10 new single bond XTBs.

The best performing exposures were the BetaShares Global Banks ETF – Currency Hedged (ASX: BNKS), BetaShares WisdomTree Japan ETF – Currency Hedged (ASX: HJPN) and the Strong Bear Hedge Fund exposures over the Australian market (ASX: BBOZ) and in the US market (ASX: BBUS).

“The availability of exchange traded products that provide short exposure has proven popular for investors looking to profit from and protect against falling Australian or US sharemarkets. They provide exposures which differ from the traditional approach of “going local and long””, he concluded.

BetaShares Australian ETF Review – October 2016

Product Series Product Ticker
Cash & Fixed Income ETFs Australian High Interest Cash ETF AAA
Commodity ETFs Agriculture ETF – Currency Hedged (Synthetic) QAG
Commodities Basket ETF – Currency Hedged (Synthetic) QCB
Crude Oil Index ETF – Currency Hedged (Synthetic) OOO
Gold Bullion ETF – Currency Hedged QAU
Currency ETFs British Pound ETF POU
U.S. Dollar ETF USD
Equities ETFs FTSE RAFI Australia 200 ETF QOZ
Financials Sector ETF QFN
Resources Sector ETF QRE
Australian Ex-20 Portfolio Diversifier ETF EX20
Equity Income Funds Australian Dividend Harvester Fund (managed fund) HVST
Equity Yield Maximiser Fund (managed fund) YMAX
Geared Funds Geared Australian Equity Fund (hedge fund) GEAR
Geared US Equity Fund – Currency Hedged (hedge fund) GGUS
International Funds FTSE RAFI U.S. 1000 ETF QUS
Global Agriculture ETF – Currency Hedged FOOD
Global Banks ETF – Currency Hedged BNKS
Global Cybersecurity ETF HACK
Global Energy Companies ETF – Currency Hedged FUEL
Global Gold Miners ETF – Currency Hedged MNRS
Global Healthcare ETF – Currency Hedged DRUG
S&P 500 Yield Maximiser Fund (managed fund) UMAX
WisdomTree Europe ETF – Currency Hedged HEUR
WisdomTree Japan ETF – Currency Hedged HJPN
Managed Risk Funds Managed Risk Australian Share Fund (managed fund) AUST
Managed Risk Global Share Fund (managed fund) WRLD
Short Funds Australian Equities Bear Hedge Fund BEAR
Australian Equities Strong Bear Hedge Fund BBOZ
US Equities Strong Bear Hedge Fund – Currency Hedged BBUS
Active AMP Capital Dynamic Markets Fund (Hedge Fund) DMKT
AMP Capital Global Infrastructure Securities Fund (Unhedged) (Managed Fund) GLIN
AMP Capital Global Property Securities Fund (Unhedged) (Managed Fund) RENT


Source: BetaShares

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