Australian ETF industry reaches all-time highs according to BetaShares May 2018 Australian ETF Review  


Alex Vynokur

Australia’s ETF industry continued its upwards trajectory in May, reaching a record high of $38.4 billion in funds under management (FUM) – a 5% increase since its rare drop in assets in March – according to theBetaShares Australian ETF Review – May 2018.

The industry grew 1.4% in the month ($534m), 90% of which came from new money inflows.  This is a huge contrast from April which saw the majority of growth from asset appreciation.

Over half of May’s new money inflows came through International Equities, which continued to be the largest category for inflows with $273m, more than double that of April.  This was followed by Cash and Fixed Income, receiving $110m and $64m respectively.

Commenting on the month’s activity, BetaShares CEO, Alex Vynokur, said, “It’s a positive sign to see another strong month for industry growth, and especially positive to see funds under management at an all-time high.”

“Similar to April, investors are still wary of how their assets are allocated, despite an improvement in the markets.  Investor sentiment towards Australian equities remains mixed, illustrated by strong inflows into cash and fixed income products,” added Mr Vynokur.

Continuing the run of new products launched this year, two new products were launched in May, including an income-oriented Active ETF and the BetaShares Australia 200 ETF (ASX: A200), the world’s lowest cost Australian shares ETF[1].

“Product innovation in the Australian ETF industry continues to deliver a broad range of investment options for investors, and has opened up markets to investors that they ordinarily wouldn’t be able to invest in.

“As investors experience market volatility, they now have the ability to really get the most from their portfolios.  ETFs allow investors to take advantage of a simple way to allocate their assets and ensure they have a diversified portfolio,” continued Mr Vynokur.

These two new products bring the total exchange traded funds launched this year to 8 and the total available to Australian investors to 234.

A copy of the BetaShares Australian ETF Review – May 2018 is attached.

[1] Source: Bloomberg, based on expense ratios of Australian shares ETFs traded in Australia or on overseas exchanges.

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