Aussie ETF assets grow on back of strong performance
Aussie ETF provider BetaShares reports that Australia’s ETF industry has not only returned to growth in April, but reached a new record high of AUD37.9 billion in funds under management, bolstered by strong performance from both global and Australian sharemarkets.
The firm writes that industry assets grew rapidly in April, up 3.6 per cent (AUD1.3 billion) after a rare drop in assets in March.
Deviating from the norm, the majority of the industry growth in April came from asset appreciation, rather than new money flows which were relatively low at AUD231 million.
As has been the case for all four months of 2018 thus far, International Equities continued to be the largest category for inflows with AUD130 million. Fixed Income ETFs moved into second place, overtaking Australian Equities this month to receive the second highest level of inflows, at AUD70 million.
Resources and energy exposures performed the best during April – with the BetaShares Global Energy Companies ETF (ASX: FUEL), followed by BetaShares Resources ETF (ASX: QRE), the best performing products. QRE also received the highest level of inflows for the month of all products.
Commenting on the month’s activity, BetaShares CEO, Alex Vynokur (pictured), says: “It’s a positive sign to see sharemarkets rally this month, pushing the ETF industry back to its strong growth trajectory.”
“Even though the markets have been improving, we can see that investors are still very much aware of how their assets are allocated, and possibly remain wary of equities, illustrated by the strong inflows into fixed income products.”
“The market volatility we experienced in the earlier months of this year is a good reminder for investors that, regardless of market conditions, ETFs provide investors with simple solutions to find the right asset allocations for their portfolio,” continues Vynokur.
Three new products were launched in April, including two multi-factor Active ETFs, and an Emerging Markets ETF, bringing the total ETPs trading on the ASX to 232.