Australian ETF industry hits new record of AUD28.3bn in assets in April

The Australian ETF provider BetaShares writes that the Australian ETF industry increased 3.3 per cent (or AUD900 million) to hit a new record of AUD28.3 billion in funds under management (FUM) at the end of April.

The latest monthly growth was driven by a relatively even split between new inflows coming to the industry (43 per cent or AUD400 million) and net asset value appreciation (57 per cent or AUD500 million).

The largest inflows were recorded in the Australian equities and Australian bonds categories, with virtually no outflows recorded at either a category or sub-category level.

ETFs with unhedged exposure to European equities and the BetaShares British Pound ETF were the best performers, as investors continued to buy into the European economic recovery.

BetaShares Managing Director, Alex Vynokur (pictured), says: “Investing in locally traded exchange traded funds with international exposures are an excellent alternative for Australian investors to diversify their portfolios.

“The European rally we’ve seen since mid-April is a good reminder that when the Australian market is flat or underperforming, there’s a simple way for local investors to find higher growth prospects offshore.”

Two new products were launched in the Australian Securities Exchange in April: BetaShares Australian Small Companies Select Fund (managed fund) (ASX: SMLL) and ANZ ETFS Global Technology ETF (ASX: TECH), bringing the total number of exchange traded products on this exchange to 204.
“In the 12 months to April, ASX traded funds have shown an impressive increase of AUD6.5 billion in AUM, which is a testimony of the appeal of these investment vehicles for both institutional and retail investors.

“We believe that product innovation will continue to attract investors to exchange traded funds,” Vynokur adds.

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