Australian ETFs break through $8b AUM.
The Australian exchange traded fund (ETF) market has exceeded the $8 billion mark for the first time, recording 10 consecutive months of record highs to reach $8.25 billion in assets under management, according to BetaShares’ Australian ETF Review for July.
The market capitalisation of exchange traded funds on the ASX grew by $618 million – or 8.1% – for the month; with $162 million inflows of new money and the remainder related to market movements.
Although product growth was relatively subdued in the first six months of the year with only one new product launched, July saw two new funds launched – the first fundamental index ETF and the first currency hedged international equities ETF which brings the total number of products on the ASX to 81.
“We expect to continue to see a greater level of product launch activity in the second half of the year, as the Australian market continues to mature,” said Mr Alex Vynokur, Managing Director of BetaShares.
In terms of trading themes for July, international equities continued to be the most popular asset class for ETF investors while domestic equities surprisingly recorded net outflows, reversing inflows from June. Cash was the second most popular category suggesting capital preservation remains an issue for investors.
The top performing products for the month were gold and palladium, with the yellow metal rebounding to reverse its price slide beginning in April.