The Australian Alternate Traded Fund (ETF) market grew 37.9% over the previous 12 months to $196.6 billion throughout 358 merchandise. This was pushed by over $18.5 billion in web inflows, optimistic market actions, and quite a few unlisted energetic funds changing into energetic ETFs.
In its March 2024 ETF Market Report, International X ETFs explores prevailing developments throughout the ETF market, offering complete insights into:
- Highest and lowest-performing ETFs
- Cryptocurrency and Know-how ETFs have been the very best performing ETFs over the previous 12 months, pushed by the launch of spot bitcoin ETFs within the US (a mannequin already in place in Australia) and anticipation of the notable upcoming bitcoin halving cycle. International X is presently the one supplier of a spot bitcoin ETF in Australia by our International X 21Shares Bitcoin ETF (EBTC) which returned +168% over the previous 12 months.
- Know-how ETFs proceed to surge pushed by the constant theme of synthetic intelligence (AI) innovation and a possible softer financial touchdown.
- Vitality transition and clear power ETFs have remained the poorest performers, weighed down by larger rates of interest which impacted borrowing prices given their lengthy challenge timelines and better reliance on debt.
- Most and least in style ETFs (by web flows)
- The vast majority of web flows have been directed towards low-cost vanilla ETFs with three of the bottom price Australian share ETFs (VAS, IOZ and A200) garnering in a complete of $4.3 billion in web flows over the previous 12 months.
- The majority of the outflows have been from energetic ETFs which, regardless of accounting for almost all of latest ETF listings, are nonetheless seeing cash leaving their funds.
- Characteristic Perception: Thematic ETFs Indicators of Resurgence
- Thematic ETFs have been a key innovation within the ETF business, enabling traders to realize publicity to specialised international megatrends. There are actually ~40 thematic ETFs out there within the Australian marketplace for traders to select from, with a complete of $5.4 billion of Australian investor cash inside them.
- International X ETFs anticipates ongoing product innovation inside thematic ETFs and elevated use by traders as satellite tv for pc exposures of their portfolios, permitting them to precise tailor-made funding views.
