Quick Bites | ETFs in Australia reach $150 billion
August 03rd, 2023 | Article
By: Paul Zwi
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.
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.
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