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The Australian Alternate Traded Fund (ETF) market grew 37.9% over the previous yr to $196.6 billion throughout 358 merchandise. This was pushed by over $18.5 billion in internet inflows, constructive market actions, and quite a few unlisted lively funds changing into lively ETFs.
In its March 2024 ETF Market Report, World X ETFs explores prevailing traits throughout the ETF market, offering complete insights into:
- Highest and lowest-performing ETFs
- Cryptocurrency and Know-how ETFs had been the very best performing ETFs over the previous yr, 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. World X is at the moment the one supplier of a spot bitcoin ETF in Australia by means of our World 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.
- Power transition and clear vitality ETFs have remained the poorest performers, weighed down by larger rates of interest which impacted borrowing prices given their lengthy mission timelines and better reliance on debt.
- Most and least well-liked ETFs (by internet flows)
- Nearly all of internet flows had 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 internet flows over the previous yr.
- The majority of the outflows had been from lively 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 achieve publicity to specialised world megatrends. There at the moment are ~40 thematic ETFs accessible within the Australian marketplace for traders to select from, with a complete of $5.4 billion of Australian investor cash inside them.
- World 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 specific tailor-made funding views.
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