Australian ETF investors get defensive in March
The State Street Global Advisor (SSgA) global ETF snapshot reports Australian investors favoured defensive investments in March, with Australian equities largely out of favour as concerns over local growth prospects surfaced.
The report stated the Australian ETF industry reached another high at the end of March, with total AUM reaching $10.7 billion and inflows for the month at a solid $265 million.
Australian ETF flows were directed towards fixed income and cash investments, in contrast to global ETF investors who sought opportunities in value based-equities over defensives.
Interest in international equity-based ETFs did not waiver among local ETF investors, however, with the category receiving the strongest inflows from Australian investors during the month.
Head of SPDR ETFs Amanda Skelly said there were several reasons for the trend towards international investing, including SMSF investor concern over exposure to financials and materials which represent more than half of the Australian market.
Skelly noted the broader adoption of ETFs by Australian-based investors - particularly within the adviser space - who were seeking broader diversification across their portfolio with low correlations to the local market. This was an underlying factor contributing to the trend towards international equity ETFs.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Dan Farmer, chief investment officer of MLC Asset Management, has detailed how its super fund allocations have evolved and whether the fund will consider investing in bitcoin.
Australia’s superannuation capital has been positioned to play a larger role in south-east Asia’s economic development under a new government-backed deal.
Superannuation funds have become the dominant force behind Australia’s private markets boom, fuelling unprecedented growth and reshaping manager operations.
Reserve Bank governor Michele Bullock has said the central bank sees private demand picking up over the next year, taking over from public demand.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
