SMSFs' appetite for exchange-traded funds continues

The Australian exchange-traded fund (ETF) market saw significant inflows during the month of August, according to Australian fund manager BetaShares, with SMSFs partly contributing to the $300 million flowing into the asset class.

The BetaShares August Australian ETF Review shows the average trading value of ETFs increased 23 per cent, with funds under management for the total ETF industry at $19 billion. 

The BetaShares Australian Equities Strong Bear Hedge Fund was the best performing exchange-traded product in August, rising 19 per cent for the month.

BetaShares managing director Alex Vynokur said there has been rising demand from SMSF trustees and retirees for ETFs.

“ETFs can be a compelling offering for SMSFs, retirees and investors that seek a strong income stream, but who may be concerned by the uncertain nature of financial markets,” said Mr Vynokur.

“The significant market volatility saw Australian investors using exchange-traded products to express both bullish and bearish views on the global markets, which led to a record monthly trading high of $2.3 billion in August.”

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