Assets in Australia’s exchange traded fund (ETF) industry hit a new all-time record high of AUD150 billion in the first half of the year, according to a new Betashares report. Few would have predicted compound annual growth of 43% since ETFs launched in Australia back in 2001.
The new high point in the domestic ETF sector is in contrast with many other investment funds, including managed equities and unlisted property trusts, which have been hit by outflows in recent years.
Source: BetaShares
ETFs have enjoyed growing popularity by offering an inexpensive and liquid way to track various indexes, sectors or themes, and by increasing their range of funds to include thematics such as high yield, tech, emerging markets, crypto, ESG, commodities, global bonds, leveraged funds, etc. and now number around 340 discrete offerings on the Australian Stock Exchange (ASX). The top 3 ETF providers on the ASX are Betashares, Vanguard and BlackRock’s iShares.
Betashares led domestic issuers during the first half, notching up about $1.8 billion in net inflows. Followed by Vanguard, which attracted $1.5 billion, and BlackRock’s iShares, which gained $1.1 billion. These three managers accounted for over 90% of industry flows since the start of the year. The largest ETF in Australia is the Vanguard Australian Shares Index ETF which is a $12 billion (market cap) behemoth.
Disclaimer: Clime Asset Management Pty Limited | AFSL 221146 | ABN 72 098 420 770. The information provided in this post is intended for general use only. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information contained therein. Please consider the relevant disclosure document/s before investing in one of our products. Investment in securities and other financial products involves risk. An investment in a financial product may have the potential for capital growth and income but may also carry the risk that the total return on the investment may be less than the amount contributed directly by the investor. Investors risk losing some or all of their capital invested. Past performance of financial products is not a reliable indicator of future performance or returns.
