ETF results positive in July

15-Aug-2017

By Megan Tran

Email Article Print Article

July was a standout month for the exchange-traded fund (ETF) industry, with the sector growing 2.3 per cent and hitting a record $30.1 billion in funds under management (FUM) on the back of positive net inflows, according to BetaShares.

The ETF provider’s “Australian ETF Review” for July revealed 100 per cent of the growth in FUM for ETFs over the month came from net inflows rather than asset appreciation, due to a flat equity market performance.

ETFs offering exposure to broad Australian equities continued to dominate inflows, followed by broad global equities products as the second most popular category for July.

Fixed income ETFs also provided favourable returns over the month, while unhedged gold ETFs were sold off, though the heightened tensions between North Korea and the United States meant gold could make a comeback, BetaShares said.

BetaShares managing director Alex Vynokur said hitting the $30 billion milestone was a significant achievement for the Australian ETF industry and a sign of investors’ growing understanding of ETFs as investment vehicles.

“The size of the industry today also reflects the value that ETFs have delivered to investors in Australia, in terms of ease of access to all major asset classes, convenience and product transparency,” Vynokur said.

There were no new exchange-traded products launched on the ASX over the month, meaning the total number of products remained at 212.

« Back to Articles