ETF Providers Drive H1 Fund Flows
Investors put more money into exchange-traded funds during the first half of the year, with Vanguard capturing the largest share of the flow.
Betashares reports that the market recorded $30 billion in inflows over the six months. This figure matches the total volume for the entirety of 2024, bringing the total funds under management to $372 billion. This represents a 12.5 per cent increase.
Vanguard led the pack with the highest volume of inflows. The provider saw over $10 billion in new money. This figure tops the $7 billion recorded in the first half of 2025.
The three largest providers were Vanguard, Betashares, and iShares. Vanguard dominated the period, taking in $3.5 billion more than its closest rival. iShares and VanEck rounded out the top four.
The market now contains 496 ETFs across the ASX and Cboe platforms. Thirty-five new products launched during the half.
Five new ETFs entered the market from Vanguard. These include the Vanguard S&P 500 US Shares Index ETF and the Vanguard S&P 500 US Shares Index (Hedged) ETF. The provider also launched the Vanguard Global Technology Index ETF and the Vanguard Global Technology Index (Hedged) ETF. The Vanguard International Shares High Yield ETF was the fifth addition.
The most popular funds during the half also came from Vanguard. The Vanguard Australian Shares Index ETF took in $2.6 billion. The Vanguard MSCI Index International Shares ETF attracted $2.2 billion. The Vanguard All-World ex US Shares Index ETF saw $1.3 billion in inflows.
These three funds accounted for the top three largest inflows across the Australian ETF spectrum.
Investor preferences were almost evenly divided between Australian equities and international equities. Only one fixed income ETF appeared in the top 10 list. The Vanguard Global Aggregate Bond Index (Hedged) ETF took in $655 million.
According to the data, $13.7 billion went into international equities. The figure for Australian equities was $8.8 billion. Fixed income saw $4.6 billion in total inflows.
Vanguard held the top two spots for the largest funds by market cap. The Vanguard Australian Shares Index holds $25.3 billion in funds under management. The Vanguard MSCI Index International Shares ETF follows at $17.2 billion. The iShares S&P 500 ETF holds the third position with $14.3 billion.
In June, Vanguard surpassed $100 billion in FUM, a first for an ETF issuer on the Australian market. The figure has since risen to $102.9 billion.
Betashares noted that the Australian ETF industry reached a record high of $372 billion in total assets. The firm stated that $400 billion is firmly in sight for the industry just a month after passing $350 billion in assets.
