Following a slight dip last month, the Australian ETF industry gained 1.7 per cent month-on-month in May to reach $198.3 billion, a new all-time record high.
According to Betashares’ latest Australian ETF review, the industry’s total market cap increased by $3.3 billion, as industry flows continued their long-running positive streak with a robust $2 billion of net flows recorded in May, the highest level of monthly inflows so far in 2024.
The net inflows represented approximated two-thirds of the monthly growth, with the remainder coming from market appreciation.
Over the last 12 months, the Australian ETF industry has grown by 34.5 per cent or $50.9 billion, Betashares revealed.
International equities comprised just under half of the industry’s net flows at $939.7 million while Australian equities made up $628.3 million and fixed income $455.1 million.
Following 11 ETF launches in April, there were seven new funds launched in May, including a new Betashares Major Bank Tier 2 Subordinated Debt ETF and new active ETFs launched by Fidelity and Macquarie Asset Management.
The best-performing ETF in the month of May was an Ethereum exposure, as well as an ETF providing exposure to alternative energy sources. This was particularly interesting given that in May, the SEC approved spot Ethereum ETF applications, marking another significant milestone for cryptocurrency.
Namely, the Global X 21Shares Ethereum ETF emerged as the top performer, returning 22.0 per cent, followed by the Global X Hydrogen ETF with a return of 19.1 per cent.
Meanwhile, the Global X Physical Silver returned 14.5 per cent, while the Global X Ultra Long Nasdaq 100 Hedge Fund gained 13.7 per cent.
The top five funds were rounded off by the VanEck Global Clean Energy ETF which returned 12.9 per cent.
At the end of May, there were 377 exchange-traded products trading on the ASX and Cboe.
