Sign in Subscribe
Exchange-traded funds

Australian ETF Market Reaches New Milestones

Strategic Insights

— 1 min read

The Australian Securities Exchange (ASX) has hit a major milestone in the ETF industry, with 400 ETFs listed across 50+ issuers, and total funds under management surpassing AUD300 billion. This growth has been driven by retail investors, with over two million Australians now holding ETFs, and the industry continuing to expand its offerings to include diverse strategies and asset classes.

Key Takeaways:

  • The ASX ETF industry has reached an important milestone with 400 ETFs listed across 50+ issuers, and total funds under management surpassing AUD300 billion.
  • The market now offers exposure across every major asset class, including equities, fixed income, commodities, and alternatives.
  • Global equities remains the largest asset class, accounting for ~50 per cent of assets, but fixed income has grown strongly in recent years.
  • Retail demand remains the powerhouse of Australia's ETF ecosystem, with over two million Australians now holding ETFs.
  • Institutional adoption is still relatively early, but growing, with estimated participation at less than 10 per cent of total ETF assets.
  • Betashares, a local issuer, is the second largest issuer on ASX by FUM and largest by number of products.
  • The growth of ETFs has been driven by both inflows and market performance, adding around AUD80 billion in new assets in the past twelve months.
  • Active ETFs now account for more than half of new listings on ASX and are expanding investor choice beyond traditional passive exposures.
  • Thematic and alternative strategies continue to attract new entrants, with innovative approaches to credit and private debt strategies also emerging.

Statistics:

  • 400 ETFs listed across 50+ issuers on the ASX.
  • Total funds under management surpassing AUD300 billion.
  • Retail demand has driven the growth of ETFs, with over two million Australians now holding ETFs, accounting for 90 per cent of total ETF assets.
  • Institutional participation is estimated at less than 10 per cent of total ETF assets.
  • AUD80 billion added to the industry in new assets in the past twelve months.
  • 50% of assets are held in global equities, while 30% are in fixed income.
  • 200 ETFs listed five years ago, with AUD70 billion in assets, compared to 400 ETFs today with AUD300 billion in assets.

Sources:

  • 1. Andrew Campion, General Manager, Investment Products & Strategy at the Australian Securities Exchange.
  • "The Growth of ETFs in Australia" article, written by Andrew Campion, published in a leading financial industry publication, date not specified.
  • ASX ETF industry data and statistics.
  • Industry reports and research papers.

Read more