The growth of the Australian ETF industry has continued into the new financial year, driven by large inflows into international equities, according to Aussie ETF provider BetaShares.
The ETF industry grew by 2.1 per cent in July (or AUD812 million) to a new high of AUD39.98 billion, according to the firm, with the lion’s share of inflows coming from international equities which brought in AUD339 million, almost four times the amount of the next best category, fixed income (AUD85 million).
Commenting on the month’s activity, BetaShares CEO, Alex Vynokur, says: “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 (AUD120 million) 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.
BetaShares reports that 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 per cent, and the BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG) with a 6.7 per cent monthly return.
No new products were launched in July. However, Vynokur expects there will be strong product growth for the remainder of 2018.
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