The Australian ETF industry has grown significantly since global and Australian share markets staged a dramatic comeback last month, according to the latest BetaShares Australain ETF review.
The industry’s assets under management (AUM) grew 5.9 per cent for a total market cap increase of $7.3 billion, the largest monthly growth on record.
The share market rise contributed the bulk of the industry growth this month, with 20 per cent of the growth attributable to net flows (net new money), which were relatively robust at $1.5 billion.
The trading value of the ASX exchange-traded fund increased 17 per cent month-on-month for a total of $10.7 billion.
Industry growth over the last 12 months has returned to being positive, with an increase of 3.7 per cent year on year, or $4.8 billion.
October was a big month for new product development, with eight new products launched, including our Energy Transition Metals ETF (XMET) and Nasdaq 100 Yield Maximiser Fund (QMAX), and new passive products from Global X and Van Eck.
Three new active ETF issuers – Abrdn, Hejaz and Firetrail – joined the industry.
Cosmos delisted their crypto equities fund, DIGA from CBOE, with their other two cryptocurrency ETFs expected to delist this month.
The Geared US Equity Fund (GGUS) has topped the charts for performance this month, returning 18.8 per cent.
The market rally saw net inflows recorded in all major asset classes, with the composition of the flows being relatively balanced. Australian Equities was the category with the highest flows at $417 million, with strong flows into Cash, Global Equities and Fixed Income as well ($396 million, $369 million and $308 million, respectively).
Overall net flows at a category level were muted and confined mainly to selling in short exposures, particularly the short Nasdaq 100 fund.