BetaShares October Australian ETF Review – ETF industry breaks the $20b barrier

Alex Vynokur

Alex Vynokur

The Australian exchange traded fund industry has recorded rapid growth in October, breaking through the $20 billion mark in total funds under management (FUM), according to the BetaShares Australian ETF Review – October 2015.

As global share markets rallied, the industry ended the month at a new record high of $20.4 billion, growing approximately 7%, or $1.3 billion, for the month – the second largest increase on record.

As has been the case for every month since the inception of the ETF Review Report, net inflows were once again positive in October, with $247 million of new money entering the industry.

The largest inflows for October were recorded in the BetaShares Australian High Interest Cash ETF (ASX:AAA), while the most popular product category was global developed markets.

Net outflows were dominated by a significant sell-down in emerging markets equities exposures.

Strong investment performance was recorded in single country Asian exposures (South Korea, Singapore and China) as well as the BetaShares Geared Australian Equity Fund (hedge fund) (ASX: GEAR), which magnified the already strong positive performance of the Australian share market during the month.

Alex Vynokur, Managing Director of BetaShares said: “The exchange traded fund industry has experienced significant growth in October, and has reached another key milestone by breaking the $20b mark for FUM.

“The growth rate this month was particularly fast, largely due to the positive market conditions in October. However, even during months when share markets have declined, the industry has continued to experience steady, consistent net inflows.

“We expect continued and sustained growth in the industry going forward, as investors increasingly gain confidence that exchange traded funds can be used as intelligent investment tools both in times of market volatility and market stability.”

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