The Australian exchange traded fund industry reached a new record of $24.6 billion in funds under management (FUM) in November, as investors traded heavily in response to the U.S. election, according to the BetaShares Australian ETF Review – November 2016.
Industry FUM grew by 2.3% (or $564 million) in November, with asset value appreciation representing 70% (or $398 million) of the growth.
In addition, the industry hit another milestone, with $2.5 billion in trading value, the highest monthly traded value for the industry on record.
“The record-breaking trading seen during November indicates that Australian investors are following the global trend of using exchange traded funds to express their investment views during significant market events, such as the recent U.S. elections,” said BetaShares Managing Director, Alex Vynokur.
At a category level, the highest inflows were in global shares products, cash and fixed income, while the highest outflows were in currencies, short exposures and Australian equities.
“The strong inflows seen in global equities may represent current optimism about Donald Trump’s election as the next U.S. president and its impact on the economy, while the inflows in cash and fixed income suggest investors are concerned for the longer term,” said Mr Vynokur.
“The outflows from Australian equities and currency exposures (mainly in USD) are possibly due to investor profit taking after the recent rally in both categories,” he added.
At a product level, BetaShares Australian High Interest Cash ETF (ASX: AAA) received the highest inflows for the month (+$73 million), while SPDR S&P/ASX 200 fund (ASX: STW) experienced the biggest redemptions (-$139 million).
The best performing products in November were Palladium and Small/Mid Cap US exposures, which rallied as Trump secured his historic victory.
READ full report: BetaShares Australian ETF Review – November 2016.
