International equities drive Australian ETF industry to an all-time high: BetaShares July 2018 Australian ETF Review


Alex Vynokur

The growth of the Australian ETF industry has continued into the new financial year, driven by large inflows into International Equities, according to the BetaShares Australian ETF Review – July 2018.

The ETF industry grew by 2.1% in July (or $812m) to a new high of $39.98B with the lion’s share of inflows coming from International Equities which brought in $339m, almost four times the amount of the next best category, Fixed Income ($85m).

Commenting on the month’s activity, BetaShares CEO, Alex Vynokur, said: “As has been the case for every month in 2018, the demand from investors for exposure to investment opportunities overseas has led to the dominance of the international equities category in the industry.”

“We’re continuing to see more and more interest in funds which provide exposure to sectors not represented in Australia – namely technology and cybersecurity. We predict this trend will continue as more people switch on to the growth and diversification opportunities available in international markets, and accessed easily on the ASX.”

Australian resources exposures saw net outflows ($120m) as investors took profits following strong performance in previous months. US Dollar investors also continued to take profits as the currency has strengthened since late January.

The top performing products in July were the BetaShares Geared US Equities Fund (hedge fund) (ASX: GGUS) which recorded a positive return of 9.1%, and the BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG) with a 6.7% monthly return.

No new products were launched in July. However, Mr Vynokur expects there will be strong product growth for the remainder of 2018.

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