Australian ETF investors continued to pour money into exchange-traded funds last week, adding $497.2 million despite ongoing geopolitical tensions and heightened volatility in the market. A report from Betashares indicated strong engagement from investors, with domestic equities leading the charge in terms of fund inflows.
Domestic equities attracted the largest share of the investment, drawing in $209.8 million, which represents 42.2 per cent of total contributions. This focus on local markets suggests investors are leveraging historically resilient home-market exposures, especially after a robust reporting season. International equities also remained popular, attracting $174.9 million, approximately 35.2 per cent of the weekly flows, signaling a continued interest in global diversification strategies.
Certain thematic sectors experienced targeted buying activity. Energy ETFs saw inflows of $33 million, while defence funds received $13.1 million. Fixed income ETFs also saw positive flows, gaining $40.3 million, and cash ETFs gained $32.4 million, pointing toward strategic portfolio rebalancing.
Gold ETFs remained relatively stable, experiencing minor net outflows of $0.3 million before buying resumed later in the week as investors looked toward safe-haven assets. Short exposures recorded outflows of $13.1 million, suggesting a reduction in bearish positions within the market.