ETFs hit new high

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The exchange traded fund industry saw rapid growth in October, breaking a new milestone.

BetaShares October Australian ETF Review has revealed ETFs saw their second largest increase on record during October, growing 7% to a new high of $20.4bn. BetaShares said net inflows were positive, with $247m of new money entering the industry.

The largest inflows for October were in the BetaShares Australian High Interest Cash, with strong investment performance recorded in single country Asian exposures and the BetaShares Geared Australian Equity Fund.

“The growth rate this month was particularly fast, largely due to the positive market conditions in October. However, even during months when share markets have declined, the industry has continued to experience steady, consistent net inflows," BetaShares managing director Alex Vynokur said.

“We expect continued and sustained growth in the industry going forward, as investors increasingly gain confidence that exchange traded funds can be used as intelligent investment tools both in times of market volatility and market stability.”