ETF trading has increased significantly over the past 3 months, with average daily value traded in March and April exceeding $770m and $460m, respectively.
Despite the sell-off that has occurred in 2020, funds have stayed in the ETFs with each month recording positive net inflows. There are a variety of ETFs that can assist investors gaining exposure to a range of investment classes to diversify and add stability to portfolios during periods of high volatility.
Active ETFs have experienced an increase in demand in comparison to the more widely used Passive and Smart Beta (factor-based) ETFs. Despite being less than 10% of the total ASX ETF fund size, Active ETFs recorded the highest net inflows in March. Net inflows here have been into BetaShares ETFs that provide downside protection (BBOZ, BEAR & BBUS), as well as the Magellan funds (MGE, MHG & MICH) that provide investors exposure to a high quality global asset manager.
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