
Industry returns to growth, aided by strong markets
After March’s rare industry dip, Australian ETFs returned to growth, aided by strong performance in both global and Australian sharemarkets.
Total industry size at month-end reached a record high of $37.9 billion, with the industry growing a significant 3.6% for the month ($1.3 billion).
Net new money for the industry was actually relatively low at $231 million, with the bulk (85%) of the industry growth coming from asset appreciation rather than net inflows.
International equities continued to be the largest category for inflows, and fixed income exposures which received the second highest level of inflows this month.
We saw an institutional size trade out of a broad Australian equities ETF this month, as well as redemptions in cash and Australian property exposures.
With all major sharemarkets performing strongly this month, it was resources and energy exposures that performed best.