Summary:
VanEck issued two new ETFs during week. An Australian RMBS ETF and an India Growth Leaders ETF.
Talking about thematic investments, this week saw announcements that BlackRock and Global X would become the latest issuers rushing to jump on the bandwagon of launching European defence ETFs. The theme emerged with WisdomTree launching an in-house-built European defence index coinciding with Donald Trump entering his second term in office. The subsequent launch of the firm’s related ETF – the first of its kind – came within a week of the US President withdrawing funding to Ukraine in March. With the ETF amassing $1.4bn assets under management (AUM) in just six weeks, rival strategies from HAN etf and BNP Paribas Asset Management hurried to market.
Elsewhere, inflows into gold exchange-traded products (ETPs) propelled gold past the $3,500 per ounce mark for the first time as investors flocked to safety amid tariff uncertainty and President Trump’s threats to oust Jay Powell from his position as Chair of the Federal Reserve. The historically reliable relationship between ETF flows and the gold price broke down in 2023 and 2024 but it has returned with a vengeance so far this year – with ETF inflows forcing gold through $3,000 and then $3,500 just one month later.
In the Australian ETF segment, the industry recorded more than $3 billion in net flows in the month of March– the ninth consecutive month that flows topped $3 billion. However, funds under management fell 2.4% in March to $249.4 billion due to declining share markets and more than offsetting the inflows.
Forget the FUM figure – markets go up and down. The Inflow figure is testament to secular change that is underway. Active equities from most managers have underperformed versus the market, in contrast to active bond strategies.
ETFs Weekly Summary
| Name | CODE | Closing Price | Æ Week Price ($) | 1 Mth Return (%) | 1 Yr Return (%) | Running Yield(%) | Market Cap (in Mill.) |
|---|---|---|---|---|---|---|---|
| BetaShares Australian High Interest Cash ETF | AAA.AXW | 50.24 | 0.03 | 0.38 | 4.54 | 4.44 | 4329.17 |
| BetaShares Australian Government Bond ETF | AGVT.AXW | 42.3 | 0.13 | 1.98 | 7.08 | 3.51 | 907.67 |
| BetaShares Australian Major Bank Hybrids Index ETF | BHYB.AXW | 9.88 | 0.04 | 0.02 | 4.77 | 6.67 | 566.44 |
| iShares Core Cash ETF | BILL.AXW | 100.69 | 0.04 | 0.39 | 4.56 | 4.37 | 760.13 |
| SPDRÊS&P/ASX Australian Bond Fund ETF | BOND.AXW | 25.7 | 0.1 | 1.61 | 6.59 | 1.53 | 42.68 |
| BetaShares Legg Mason Australian Bond Fund | BNDS.AXW | 23.87 | 0.07 | 1.36 | 6.71 | 3.93 | 832.52 |
| BetaShares Australian Investment Grade Corporate Bond ETF | CRED.AXW | 23.24 | 0.02 | 0.46 | 8.93 | 4.81 | 1107.38 |
| Daintree Hybrid Opportunities ETF | DHOF.AXW | 9.41 | 0.01 | -1.46 | 3.24 | 5.87 | 52.12 |
| Elstree Hybrid Fund ETF | EHF1.CXA | 5.16 | -0.04 | 5.73 | 41.06 | ||
| Daintree Core Income FundÊETF | DCOR.AXW | 50.98 | 0.11 | 0.08 | 1.00 | 42.21 | |
| VanEck Vectors Australian Floating Rate ETF | FLOT.AXW | 24.89 | 0.02 | 0.04 | 4.99 | 5.04 | 759.48 |
| BetaShares Sustainability Leaders Diversified Bond Hedged ETF | GBND.AXW | 20.67 | 0.08 | 1.54 | 4.36 | 2.95 | 238.77 |
| BetaShares Global Government Bond 20+ Year ETF Ð Currency Hedged | GGOV.AXW | 13.12 | -0.09 | -2.63 | 1.32 | 2.97 | 220.81 |
| Janus Henderson Sustainable Credit Active ETF | GOOD.AXW | 51.22 | 0.15 | 1.07 | 3.10 | 4.77 | 1.54 |
| SPDRÊS&P/ASX Australian Government Bond Fund ETF | GOVT.AXW | 24.64 | 0.12 | 1.79 | 6.59 | 2.32 | 58.30 |
| BetaShares Active Australian Hybrids Fund ETF | HBRD.AXW | 10.08 | 0 | -0.13 | 5.31 | 6.44 | 2357.51 |
| BetaShares Interest Rate Hedged Australian Investment Grade Corporate Bond ETF | HCRD.AXW | 24.96 | 0.02 | -0.70 | 7.00 | 4.82 | 42.56 |
| iShares Core Composite Bond ETF | IAF.AXW | 102.93 | 0.24 | 1.44 | 6.45 | 2.83 | 2994.98 |
| iShares Treasury ETF | IGB.AXW | 99.49 | 0.34 | 1.81 | 6.01 | 2.44 | 425.78 |
| iShares Global High Yield Bond ETF | IHHY.AXW | 91.77 | 0.83 | -0.63 | 6.59 | 6.34 | 213.21 |
| iShares Core Global Corporate Bond ETF | IHCB.AXW | 90.58 | 0.35 | -0.21 | 5.71 | 4.06 | 256.78 |
| iShares J.P. Morgan USD Emerging Markets Bond ETF | IHEB.AXW | 73.08 | 0.21 | -1.36 | 6.02 | 5.13 | 53.61 |
| iShares Government Inflation ETF | ILB.AXW | 124.24 | 1.33 | 0.74 | 1.40 | 1.67 | 914.75 |
| iShares Enhanced Cash ETF | ISEC.AXW | 100.79 | 0.09 | 0.40 | 4.69 | 4.47 | 286.97 |
| Betashares Australian Composite Bond ETF | OZBD.AXW | 44.96 | 0.06 | 1.39 | 7.41 | 3.85 | 551.14 |
| VanEck Vectors Australian Corporate Bond Plus ETF | PLUS.AXW | 17.09 | 0.08 | 0.71 | 8.09 | 3.83 | 369.53 |
| BetaShares Australian Bank Senior Floating Rate Bond ETF | QPON.AXW | 25.96 | 0.03 | 0.11 | 5.17 | 5.48 | 1603.26 |
| Russell Australian Select Corporate Bond ETF | RCB.AXW | 20.32 | 0.11 | 1.24 | 6.94 | 3.88 | 289.15 |
| Russell Australian Government Bond ETF | RGB.AXW | 19.38 | 0.09 | 2.26 | 6.57 | 1.89 | 243.94 |
| Russell Australian Semi-Government Bond ETF | RSM.AXW | 20.86 | 0.03 | 1.41 | 6.92 | 0.00 | 57.51 |
| VanEck Vectors Australian Subordinated Debt ETF | SUBD.AXW | 24.96 | 0.03 | -0.40 | 5.60 | 5.99 | 2384.52 |
| VanEck 1-3 Month US Treasury Bond ETF | TBIL.AXW | 52.77 | -0.13 | -0.90 | 7.39 | 4.49 | 148.97 |
| US Treasury Bond 7-10 Year Currency Hedged ETF | US10.AXW | 50.62 | -0.19 | -0.28 | 5.60 | 3.23 | 27.37 |
| Betashares Inflation Protected US Treasury Bond (Hedged) ETF | UTIP.AXW | 25.75 | 0.17 | -0.04 | 5.52 | 1.89 | 187.47 |
| Vanguard Australian Corporate Fixed Interest ETF | VACF.AXW | 51.62 | 0.13 | 0.81 | 7.09 | 3.40 | 677.53 |
| Vanguard Australian Fixed Interest Index ETF | VAF.AXW | 46.35 | 0.13 | 1.47 | 6.57 | 2.70 | 2583.97 |
| Vanguard Global Aggregate Fixed Interest Index Hedged ETF | VBND.AXW | 41.95 | 0.05 | 0.44 | 5.33 | 2.26 | 2579.29 |
| Vanguard International Credit Securities Index ETF | VCF.AXW | 38.44 | 0.07 | -0.04 | 5.40 | 2.76 | 172.74 |
| Vanguard Ethically Conscious Global Aggregate Bond Index Hedged ETF | VEFI.AXW | 42.7 | 0.08 | 0.77 | 5.29 | 2.27 | 75.05 |
| Vanguard Australian Government Bond Index ETF | VGB.AXW | 47.14 | 0.13 | 1.82 | 6.49 | 2.65 | 1090.63 |
| Vanguard International Fixed Interest Index ETF | VIF.AXW | 38.85 | 0.07 | 1.01 | 4.54 | 1.80 | 868.36 |
| ActiveX Ardea Real Outcome Bond Fund ETF | XARO.AXW | 23.95 | -0.06 | -0.41 | 2.32 | 1.49 | 217.94 |
*Closing price as at end of week. Returns in AUD before fees
AUSTRALIA AND GLOBAL ETF REVIEW
The inclusion of global ETFs, specifically the US and Europe, is intended to provide two types of investor insights and that are ultimately pertinent to the Australian ETF market.
Firstly, inflows / outflows data and which clearly provides a strong signal regarding investor sentiment regarding asset classes, geographic preferences or otherwise, thematic / sector preferences, and finally fear and greed levels.
Secondly, new issue ETFs reflect ‘real-time’ investment theme investor sentiment. i.e, what’s ‘hot’. Additionally, the largest Australian ETF issues are all part of large international entities. And often what ETF is issued in their home markets and, to some degree, subsequently issued in Australia.
Global X is launching the Artificial Intelligence Infrastructure ETF (ASX: AINF). The ETF focuses on companies with exposure to data centres, energy and materials that help facilitate the adoption of AI technologies. Launching on the ASX in April, AINF tracks the Mirae Asset AI Infrastructure Index with 30 holdings in total. The index aims to track the performance of companies involved in supporting the data centre infrastructure requirements arising from AI operations.
First Trust launches April S&P 500 buffer ETF. First Trust has added to its range of actively managed S&P 500 buffer ETFs – the latest with an annual outcome period and an April reset date. Buffer ETFs work by providing long exposure to an equity index – the S&P 500 in the case of FAPR – while using put protection to ‘buffer’ investors from drawdowns up to a certain magnitude – 10% in this case – below which point investors are fully exposed to losses. The fund then sells a call option at whatever level neutralises the cost of the protection. This effectively caps the potential upside. In April 2026, FAPR’s buffer will be reset to 10% relative to the prevailing level of the S&P 500. In April 2027 it will reset again and so on in perpetuity.
Robeco unveils active emerging markets ETF (Ticker REM3). The firm is plotting an entry into active fixed income ETFs in 2025. Robeco has expanded its actively managed ‘3D’ equity suite with the launch of an emerging market ETF. Like other ‘enhanced index’ active ETFs offered by the firm and its peers, REM3 integrates a “quant approach” to inform its broad allocation to emerging market equities.
BNP Paribas AM to launch Europe defence ETF. The French asset manager will join Amundi, HANetf and WisdomTree which entered the exposure in quick succession. BNP Paribas Asset Management (BNPP AM) is set to become the latest issuer to launch a European defence ETF as asset managers look to tap investor appetite to capture the beneficiaries of military spending across the continent. BNP want to answer our client demand by offering a new investment solution that intends to capture a secular theme, supported by policy tailwinds and structural trends. European defence ETFs have enjoyed a strong start to life since entering the market little over a month ago.