The Australian ETF industry now reaches a record $242.9 billion in assets under management (AUM), according to new data from Betashares.
The milestone comes after the ETF industry recorded its second strongest month on record in terms of asset growth in November, with total market capitalization increasing by $10.4 billion, or 4.5 percent.
Notably, net flows in the calendar year through November were $26.9 billion, setting a new record well above the $23.3 billion set in 2021.
Betashares stressed that the local market is now “far” from $250 billion.
“Industrial flows were strong again with $3.1 billion recorded in November, the third highest level of monthly flows on record,” detailed the ETF provider.
“Over the past 12 months, the industry grew by 36.9 percent, or $73.2 billion. »
Meanwhile, trading value on the ASX was slightly higher month-on-month, reaching some $13.7 billion for November.
Exposures to digital assets once again performed well, with the Crypto Innovators ETF (CRYP) topping the list with a return of 42.4% over the period.
In fact, the top five performing funds of the month were all exposed to cryptocurrency, CRYP followed by the Global X 21 Shares Ethereum ETF (42%), the DigitalX Bitcoin ETF (39.8%), the Global Bitcoin ETF (39.8%). percent) and VanEck Bitcoin ETF (39.6 percent).
In terms of product launches, four new funds launched last month, including Australia’s first ethical fixed income ETF, and three other funds.
Conversely, Magellan closed three active funds from its Core range.
In terms of asset flows, November was a standout month for international equity products with inflows exceeding $1.7 billion, while Australian equities ($804 million) and income securities fixed ($565 million) complete the top three.
The multi-asset and currency sectors, meanwhile, generated $101.8 million and $61.8 million from new investors.
International stocks continue to capture the lion’s share of flows, with recent analysis showing six out of ten most popular ETFs in Australia were focused on global stocks.
The first InvestSMART ETF Scorecard report, released in October, found that international ETFs were the most popular ETF category in the 12 months to August 2024.
One likely reason is that investors see the benefits of investing internationally and want exposure to the booming U.S. technology sector, InvestSMART said.
Looking ahead, the group’s CEO Ron Hodge said at the time that over the next decade, ETFs will likely become the cornerstone of wealth creation strategies, especially as “the rise skyrocketing property prices” puts homeownership even further out of reach for younger generations.
“It’s crucial for investors to look beyond short-term gains and focus on long-term performance… This year’s winner could easily be next year’s loser,” Hodge told reporters. ‘era.
