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BetaShares Australian ETF Review November 2013: The industry continues to rise and rise

09 Dec 2013
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ETF market scaling new heights.

ETF market scaling new heights.

The Australian exchange traded fund (ETF) market continued its 18th consecutive month of growth in November, reaching a new record high of $9.6 billion in funds under management, according to BetaShares’ November ETF Review.

ETF industry assets grew 3.2% ($297 million) in November with the bulk of the growth ($210 million) attributable to new money rather than market performance.

The trend towards international equities ETFs continued this month with all four new products launched in November offering these exposures. This trend was mirrored in terms of fund inflows, with $85 million flowing into international equities ETFs over the month.

Alex Vynokur, Managing Director of BetaShares said: “With the US and European markets continuing to show signs of recovery, investors are continuing their bullish stance on international equities and this is being reflected in this month’s ETF flows.”

All of the top three products in terms of inflows during November were also international equities ETFs, further reflecting local investors’ confidence in global markets.

Meanwhile, sentiment towards the local equities market also continued to rebound, with high levels of inflows into ETFs that offered Australian share exposures. Australian equities recorded the most inflows in November ($88m), reversing a four month trend where international equities were the most popular product category.

“Inflows into Australian equities are beginning to feature strongly as we come to the end of the year, and investor confidence in the local market grows off the back of international recovery,” said Mr Vynokur.

“It’s been an extraordinary year for the ETF market as a whole, with strong ongoing growth notwithstanding lower numbers of new product launches compared to previous years. We expect to see this positive trend continue for the last month of the 2013 as we move closer towards the $10 billion milestone,” Mr Vynokur concluded.

Click here to view the BetaShares Australian ETF Review for November 2013.

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