The top 5 ETF performers in April 2024

The breakup of iconic Australian financial services company, Perpetual, is just the latest chapter in the shifting funds management landscape. 

A highly regarded financial services firm whose history stretches back more than 138 years, Perpetual came unstuck after its scrip, cash and debt-funded 2022 acquisition of rival Pendal went awry.

The rise of passive investing is one of the defining factors of the struggles faced by the likes of Perpetual, AMP, Magellan Financial Group and others.

We’ve consistently noted the growing pool of Australian investors favouring passive vehicles including exchange-traded funds over active management. The biggest milestone came last year, when for the first time, the level of funds inside ETPs outstripped active funds.

In the US, passively managed funds – including ETFs and index funds – held US$13.29 trillion at the end of 2023, versus US$13.23 trillion held in active funds.

The Australian ETF industry hit an all-time high over the same period, with a total industry market capitalisation of $177.5 billion. The 33% growth, which saw ETFs' funds under management (FUM) grow by $43.7 billion year-on-year, also set a new record.

The pace of growth has slowed in the latest data, with April’s inflows in negative territory - though only slightly - thanks to global share market declines. Total assets under management in the ETF industry assets fell by less than 1% (-0.9%) month-on-month, for a total monthly market cap decline of -$1.7 billion.

The industry now sits at $195 billion - just under the all-time high of $196.7 billion hit last month.

Stripping out market volatility, flows remained “positive, albeit muted, with $1.2 billion of net flows for the month,” according to Betashares Australian ETF Review for April, which is prepared using ASX data.

ETPs in April - By the numbers 

• 11 new ETPs were launched, including two geared products across Australian combined Australian and global equities.
• 370 ETPs now trade across the ASX and CBOE
• 8 new active ETF launches
• $544 million of inflows for international equities products
• 22% was the increase in trading value, the ASX trading a total of $11 billion 

Note: Because one month of performance data is not a reliable basis for comparing investments, the following is intended for information purposes only. All data is current as of 9 May 2024.

Past performance is no guarantee of future performance. Seek independent financial advice before making any investment decision

The 5 top-performing products in April 2024

Global X Ultra Short Nasdaq 100 Hedge Fund (ASX: SNAS)

• Return: 11.7%
• AUM: $64.91 million
• Inception: 10 July 2020

An actively managed ETF ¬¬– also known as an exchange-traded managed fund (ETMF), this investment aims to provide access to geared returns that are negatively related to the returns of the US, tech-heavy index the NASDAQ-100. SNAS invests primarily in a portfolio of short-sold E-mini Nadaq-100 Future contracts that are listed on the Chicago Mercantile Exchange.

ETF

Global X Ultra Short Nasdaq 100 Hedge Fund (SNAS)

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Betashares Geared Short U.S. Treasury Bond Fund-Currency Hedged (Hedge Fund) (ASX: BBFD)

• Return: 11.5%
• AUM: $1.13 million
• Inception: 4 December 2023

Providing a way to generate “magnified returns” that are negatively related to 10-year US Treasury Bonds on a given day, BBFD is hedged for currency exposure.

The fund invests its assets in cash and cash equivalents, and sells 10-year US Treasury Note Futures. The futures contracts reflect the returns of an underlying US Treasury Bond with 10 years to maturity.

“A 1% fall in the value of the bond on a given day can generally be expected to deliver a 2.5% to 3.0% increase in the value of the Fund (and a corresponding decrease in the value of the Fund if the value of the bond rises by 1%),” says the Betashares fund documentation.

ETF

Betashares Geared Short U.S. Treasury Bond Fund – Currency Hedged (hedge fund) (BBFD)

Global Fixed Income

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Global X Copper Miners ETF (ASX: WIRE)

• Return: 10.5%
• AUM: $197.86 million
• Inception: 21 November 2022

WIRE provides access to a global basket of copper miners that are widely expected to benefit from their role in the supply chain for major areas of innovation such as technology, infrastructure and clean energy.

The fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Copper Miners Total Return Index, according to Global X.

ETF

Global X Copper Miners ETF (WIRE)

Global Shares

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Betashares US Equities Strong Bear Currency Hedged (Hedge Fund) (ASX: BBUS)

• Return: 10.5%
• AUM: $180.75 million
• Inception: 24 August 2015

BBUS seeks to generate magnified returns that are negatively correlated to the returns of the US share market. It is expected to generate a “magnified positive return when the S&P 500 Total Return Index falls on a given day – and a magnified negative return when the index rises on a given day,” says Betashares.

For example, a 1% fall in the US share market on a given day can generally be expected to deliver a 2% to 2.75% increase in the value of the fund (and a corresponding decrease in the value of the Fund if the US share market rises).

ETF

BetaShares US Equities Strong Bear Hedge Fund - Currency Hedged (BBUS)

Global Shares

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Betashares Energy Transition Metals ETF (ASX: XMET)

• Return: 10.4%
• AUM: $26.63 million
• Inception: 26 October 2022

XMET invests in global producers of copper, lithium, nickel, cobalt, graphite, manganese, silver and rare earth elements. The fund aims to track the performance of the Nasdaq Sprott Energy Transition Materials Select Index (before fees and expenses), which provides exposure to a portfolio of global companies in the energy transition metals industry.

ETF

BetaShares Energy Transition Metals ETF (XMET)

Global Shares

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To read the full report, prepared by Betashares using ASX data, download the attached PDF document