‘Rare dip’ for ETFs as Aussie benchmark takes | Australian Markets

Australia’s exchange traded fund (ETF) market recorded a uncommon dip in market cap, with robust month-to-month inflows unable to offset the drop, knowledge from main ETF trader Betashares reveals.

The whole market cap for ETFs declined by 0.8%, or $2.1 billion, between January and February this yr, Betashare’s latest market replace confirmed.

Over the identical period, the S&P/ASX 200 index fell 3.1%, with considerations round Trump’s tariff coverage and a tightening jobs market rattling traders.

The rout has continued for the benchmark index, slipping beneath 8,000 for the primary time in six months.

Australians’ ETF asset holdings now sit at $255.3 billion, simply shy of the all-time high set in January this yr.

Regardless of market volatility, industry flows remained optimistic, with Betashares recording a complete of $3.2 billion in ETF industry web flows for the month.

Worldwide equities merchandise ($1.5 billion) maintained their robust lead over Australian equities ($722 million) and fixed income ($500 million).

Vanguard Australian Shares Index (VAS), iShares S&P 500 (IVV), and Betashares World Shares ETF (BGBL) noticed the largest month-to-month inflows.

Betashares Sustainability Leaders Diversified Bond (Forex Hedged), Magellan’s World Fund (Open Class) (Managed Fund), and Betashares Legg Mason Actual Revenue Fund (Managed Fund), in the meantime, noticed the largest outflows.

ASX trading worth was additionally 8% larger month on month, sitting at $13 billion for February.

February was the fifth consecutive month the place the industry recorded flows above the $3 billion mark, the info confirmed.

Regardless of the February hiccup, ETF market cap growth for the yr stays effectively within the black, up 34.8% or $66.0 billion.

Eleven new ETF merchandise had been launched in February this yr, together with Betashares’ own crypto-exposed funds QBTC, a Bitcoin-centred ETF, and the QETH, the primary Ethereum ETF on the ASX.