The BetaShares Australian ETF Review also shows market capitalisation rose two per cent during the month.
The report also indicates a large number of investors shifted their investments out of Australian equities, with $40 million flowing out of this asset class.
According to BetaShares, the Australian High Interest Cash ETF and Equity Yield Maximiser Fund experienced the highest inflows over the month.
The review also indicated four out of five categories in terms of inflows were orientated towards a defensive positioning.
BetaShares managing director Alex Vynokur said the flows during March indicate investors are showing caution in regard to the Australian equities market.
“With investors potentially feeling unsure about the future direction of the local equities market, many are taking the opportunity to construct a more defensive portfolio, incorporating cash and yield-focused strategies to guard against potential market volatility,” said Mr Vynokur.
The top ETF products in regard to performance were those offering an exposure to agriculture, according to the report.
The review said this was mostly due to the uncertainty on the future supply of soft commodities, particularly with the effects of drought in the US.
“The best performing exposure each month this year to date has been commodities-based, and highlights the value of the asset class in building a diversified portfolio, especially during times of equity market volatility,” said Mr Vynokur.
