Global X Australia releases its latest Australian ETF Market Scoop for Q3 2024
According to Global X ETFs, the Australian Exchange Traded Fund (ETF) market grew 48.6% over the past year to $226.6 billion across 394 products. This was driven by $26.0 billion in net inflows, positive market movements, and numerous unlisted active funds converting into active ETFs.
Global X ETFs have outlined the prevailing trends within the ETF market, providing comprehensive insights into:
- The Best and Worst Performing ETFs
- Cryptocurrency ETFs continue to be the best performing ETFs over the past year, buoyed by a falling interest rate environment, higher risk appetite by investors and strong flows into bitcoin ETFs.
- Clean energy ETFs have continued to struggle with weak performance over the past year. The transition to net zero may be more costly than anticipated, and many companies within these ETFs have faced pressures from rising borrowing costs.
- The Most and Least Popular ETFs
- Australian investors seem to be favouring two things – low cost and simplicity. Most of the investor dollars have flown into broadly diversified cheap ETFs such as A200 and VAS, with both funds each receiving around $2 billion in net flows.
- High-cost active ETFs continue to be shunned by investors in favour of their low-cost index ETFs. MGOC led the outflows with -$2.9 billion, while minimum volatility strategies also saw large withdrawals.
- Feature Insight: ETFs Flex Their Tax Advantage
- ETFs offer significant tax efficiencies compared to traditional unlisted managed funds, thanks to their unique structure. One key advantage is that ETFs trade directly on the stock exchange, allowing investors to buy and sell shares among themselves without requiring the fund to adjust and excessively trade its underlying portfolio holdings.
The report can be downloaded here.
