New money drives industry growth to record high of $29 billion FUM

Despite declines in the broader Australian market, net inflows lifted the Australian exchange traded fund (ETF) industry by 2.6% (or $733.7 million) to hit a new record high of $29 billion in funds under management (FUM), according to the BetaShares Australian ETF Review – May 2017.

Most of the month’s industry growth came from net new money ($657.8 million), rather than asset appreciation.

In line with previous months this year, Australian equities recorded the highest inflows with broad Australian exposures the most popular funds in May. Equity Income products were also popular, with the BetaShares HVST and YMAX funds receiving strong net flows.

The best performing exposures were Asian Equities, particularly Korean, followed by the Australian Equities Strong Bear Hedge Fund (ASX: BBOZ), which experienced positive performance of 7.6%, profiting from the decline of the Australian market.

BetaShares Managing Director, Alex Vynokur, said: “It’s exciting to see the industry approach the $30 billion milestone. We are confident this growth trajectory will only get stronger as investor demand and innovation drives more product launches to suit a diverse range of investor needs.”

“The continued growth of the ETF industry in May, despite the decline of the Australian share market shows its resilience and versatility for investors,” he added.

Two new products were launched on the Australian Securities Exchange in April: the VanEck Vectors Australian Corporate Bond Plus ETF (ASX: PLUS) and the UBS IQ Cash ETF (ASX: MONY), bringing the total number of exchange traded products on the ASX to 206.

“Over the next quarter, we expect to see more products based on the cash and fixed income asset classes launched, as investors seek income solutions outside of the volatile equity market,” concluded Mr Vynokur.

A copy of the BetaShares Australian ETF Review – May 2017 is attached.

Media enquiries:

Rachel Maher
Honner
rachel@honner.com.au
+612 8248 3746 / +61 434 191 290
Alex Vynokur
BetaShares
alex.vynokur@betashares.com.au
+61 2 9290 6888

 

Product Series Product Ticker
Cash & Fixed Income ETFs Australian Bank Senior Floating Rate Bond ETF QPON
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
Euro ETF EEU
U.S. Dollar ETF USD
BetaShares Strong U.S. Dollar Fund (hedge fund) YANK
BetaShares Strong Australian Dollar Fund (hedge fund) AUDS
Equities ETFs FTSE RAFI Australia 200 ETF QOZ
Financials Sector ETF QFN
Resources Sector ETF QRE
Australian Ex-20 Portfolio Diversifier ETF EX20
Australian Small Companies Select Fund (managed fund) SMLL
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
Global Sustainability Leaders ETF ETHI
NASDAQ 100 ETF NDQ
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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