Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 388

November 2020 was an historic month for ETFs

This article is an extract from the BetaShares Australia ETF Review for November 2020. There are now 257 Exchange Traded Products trading on ASX and Chi-X.

Firstlinks regularly includes monthly and quarterly ETF reviews in its Education Centre, and we are highlighting ETFs this month due to the historic milestones:

  • November 2020 saw industry records broken for absolute Funds Under Management (FUM), absolute dollar monthly FUM growth, annual growth in FUM and largest net flows on record amongst others
  • A notable event this month was the conversion of Magellan’s Global Fund into an ‘Open Class’ structure which permits applications and redemptions both on and off market. The entire $13.5 billion in that strategy has been ‘ported’ across to the ETF industry data. We’ve included the converted fund for FUM purposes in the numbers below but, given it’s a structural change not a net flow, have excluded from the monthly flow figures
  • Including this conversion the industry’s market cap is now $92.3 billion, although, even without it, the industry rose to a record high of $78.7 billion, representing an almost $5 billion monthly FUM increase, smashing the previous record of $4.1 billion recorded in January 2020
  • For the third month in a row, the Australian ETF industry broke its all-time net flows record, receiving $2.5 billion of net flows, surpassing the previous record from last month ($2.3 billion)
  • Including the Magellan conversion, industry growth over the last 12 months has been 52%, representing absolute growth of $31.6 billion over this period
  • With sharemarkets rallying strongly in November, we saw an almost even mix between asset value appreciation and net new money.
  • Trading value remained strong with ~$8.3 billion traded which represented a 19% month-on-month growth
  • Three new products were launched this month, all of which were Active ETFs. Apart from Magellan’s conversion, new funds were launched by Munro and Loftus Peak in the global equities space
  • As has been the case since the COVID crisis, equities exposures dominated net flows this month, and this month, particularly the case with international equities ($1.2 billion of net flows).
  • We saw outflows in cash and short exposures, both of which may be the result of markets rallying and investors positioning for a risk-on allocation.

Figure 1: Australian ETP Market Cap: August 2001 – November 2020

CAGR: Compound Annual Growth Rate. Source: ASX, Chi-X, BetaShares. Note, in November 2020, Magellan restructured a large international unlisted exposure to an open class structure and this fund (MGOC) will be included in ETF figures going forward.

Top 10 Products: November 2020

By Market Cap

Other products with > $1B AUM: VAP, VEU, IAF, VAF, VHY, QUAL, MVW, NDQ, VGAD, A200

Top 10 Inflows (by $) - Month

Top 10 Outflows (by $) - Month

Top 5 Category Inflows (by $) – November 2020

Top Category Outflows (by $) – November 2020

Figure 2: ASX ETF Flows by Asset Class - Last 4 Months (A$m)

Top 5 Sub-Category Inflows by ($) – November 2020

Top Sub-Category Outflows by ($) – November 2020

ETF Issuer Flows – YTD 2020

 


 

Leave a Comment:

RELATED ARTICLES

It pays to look under the hood of ETFs

Global ETF trends coming soon to Australia

Six charts on how Australians invested in 2022 and why

banner

Most viewed in recent weeks

Australian house prices close in on world record

Sydney is set to become the world’s most expensive city for housing over the next 12 months, a new report shows. Our other major cities aren’t far behind unless there are major changes to improve housing affordability.

The case for the $3 million super tax

The Government's proposed tax has copped a lot of flack though I think it's a reasonable approach to improve the long-term sustainability of superannuation and the retirement income system. Here’s why.

Tariffs are a smokescreen to Trump's real endgame

Behind market volatility and tariff threats lies a deeper strategy. Trump’s real goal isn’t trade reform but managing America's massive debts, preserving bond market confidence, and preparing for potential QE.

The super tax and the defined benefits scandal

Australia's superannuation inequities date back to poor decisions made by Parliament two decades ago. If super for the wealthy needs resetting, so too does the defined benefits schemes for our public servants.

Meg on SMSFs: Withdrawing assets ahead of the $3m super tax

The super tax has caused an almighty scuffle, but for SMSFs impacted by the proposed tax, a big question remains: what should they do now? Here are ideas for those wanting to withdraw money from their SMSF.

Getting rich vs staying rich

Strategies to get rich versus stay rich are markedly different. Here is a look at the five main ways to get rich, including through work, business, investing and luck, as well as those that preserve wealth.

Latest Updates

SMSF strategies

Meg on SMSFs: Withdrawing assets ahead of the $3m super tax

The super tax has caused an almighty scuffle, but for SMSFs impacted by the proposed tax, a big question remains: what should they do now? Here are ideas for those wanting to withdraw money from their SMSF.

Superannuation

The huge cost of super tax concessions

The current net annual cost of superannuation tax subsidies is around $40 billion, growing to more than $110 billion by 2060. These subsidies have always been bad policy, representing a waste of taxpayers' money.

Planning

How to avoid inheritance fights

Inspired by the papal conclave, this explores how families can avoid post-death drama through honest conversations, better planning, and trial runs - so there are no surprises when it really matters.

Superannuation

Super contribution splitting

Super contribution splitting allows couples to divide before-tax contributions to super between spouses, maximizing savings. It’s not for everyone, but in the right circumstances, it can be a smart strategy worth exploring.

Economy

Trump vs Powell: Who will blink first?

The US economy faces an unprecedented clash in leadership styles, but the President and Fed Chair could both take a lesson from the other. Not least because the fiscal and monetary authorities need to work together.

Gold

Credit cuts, rising risks, and the case for gold

Shares trade at steep valuations despite higher risks of a recession. Amid doubts that a 60/40 portfolio can still provide enough protection through times of market stress, gold's record shines bright.

Investment strategies

Buffett acolyte warns passive investors of mediocre future returns

While Chris Bloomstan doesn't have the track record of his hero, it's impressive nonetheless. And he's recently warned that today has uncanny resemblances to the 1990s tech bubble and US returns are likely to be disappointing.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.