Our July market update for the ETF markets came out yesterday and we got to chat with the folks at ausbiz today. Normally I'd write up a synopsis but they've done a great job here so check out the video and sign up to ausbiz if you've not alread done so - it's free and got awesome market insights: https://www.ausbiz.com.au/media/investors-continue-to-pile-into-the-etf-market?videoId=13364
The overall ETF market has continued to grow over July, reaching over $116B from just the ASX data. Mark Monfort from New Era Analytics is still awaiting the Chi-X numbers but it is clear that ETFs continue to be popular. The growth of ETFs on the ASX coincides with the 20th anniversary for the funds being traded on the stock exchange. With this current pace of growth it could even reach $140B, with the most popular ETFs on the bourse being equity related funds. Over the last few months the ESG sector of the market has continued to grow. This has been partially driven by the introduction of new funds like EARTH and IESG. But Mark says that some of the ETFs have changed their investment strategy. The mandate change has now turned these funds into ESG ones for investors to trade. It’s not just retail investors, as ESG related funds were the most traded over July, with high volumes and the highest transaction values occurring at the same time. Mark doesn’t believe this trend is likely to slow down. Overall 1-month returns was +0.9% with best categories including Global Property, Infrastructure and Commodity ETFs. Mark says property is seeing a lot of interest, particularly with the international names. Gold also had a good run in July but that may have changed by now says Mark.