Investors in ASX-listed ETFs have continued to pile into global equities in 2021 with ‘ethical’ labeled products on the up, according to a new BetaShares analysis.
The BetaShares report published last week shows international share funds captured A$2.8 billion of the total A$6 billion or so of net ETF flows on the ASX over the four months to the end of April this year.
Over A$1 billion of the global equities influx flowed to developed world ETFs followed by sector funds (A$700 million) and ethical products (about A$350 million).
“With younger investors becoming more educated about ethical options within the ETF universe, and companies increasingly making the shift to becoming carbon neutral, ethical ETFs have seen a significant rise in demand, resulting in strong inflows across the board,” the BetaShares report says.
BetaShares own-brand products absorbed close to 80 per cent of the ASX ethical ETF flows over the four-month period, the analysis says, including more than A$190 million flooding into the firm’s Global Sustainability Leaders fund.
In fact, the BetaShares popular sustainability ETF was bested for net flows overall only by the perennial favourite Vanguard broad global shares ETF, which raked in a net A$200 million over the four months to the end of April.
The BetaShares Nasdaq 100 ETF also drew about A$190 million in net flows for the period, reflecting again a youthful enthusiasm for technology-infused stocks.
Australian equities ETFs garnered almost A$1.5 billion in net flows for the year to April 30 followed by A$900 million or so into fixed income funds, which recovered from a bad period for bond products in 2020.
“When considering Australian equities flows, there is one clear observation – broad market exposures continue to dominate, with just over $1.2 billion in net flows,” the BetaShares report says. “Within broad market equities, passive ETFs tracking the ASX 200 and ASX 300 were the clear winners, making up $1.1 billion of total broad market Australian equity flows.”
The Sydney-headquartered BetaShares reported more than A$17 billion under management as at the end of April invested across more than 60 ETFs.
As reported previously, BetaShares hired ex-Smartshares head of institutional, Thom Bentley, in May as its first NZ hire, operating from a newly opened Auckland office.
At the time, BetaShares chief, Alex Vynokur, said: “We are now excited to deepen our presence in the New Zealand market via a local office, which will help us to better service the needs of New Zealand investors with our extensive range of intelligent investment solutions.”