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ETFs crack $100bn

Nearly 20 years after ETFs started trading in Australia, their total assets crossed $102 billion at the end of March.

There are now 220 ETFs listed on the ASX. In March, their investors made roughly 18,685 ETF trades a day with average daily trading volume of $355.4 million.

Their March end FUM of $102 billion is 80% higher than $56.6 billion 12 months ago.

In the year ending March, the average 12-month transactions grew by 75% to 390,534. The 12-month average traded value was up about 27% to $7.49 billion.

"The Australian ETF industry has come a long way since the first ETF was listed in August 2001. We've seen impressive market growth over the last few years in particular, evidenced by the industry surpassing A$100 billion in assets across the now 220 and growing ETFs listed on the ASX when just ten years ago we had only 50," Vanguard head of capital markets Minh Tieu said.

"Investor confidence has greatly improved since this time last year when markets were first rocked by COVID-19.

"While domestic equity, niche and leveraged ETFs were favoured in the first half of 2020 as investors sought to navigate market volatility, a year on we are seeing better diversification across both asset classes and ETF types, with a notable increase in flows to international equity and actively managed ETFs."

BetaShares said it expects the industry to grow a further 25% over 2021 to $125 billion.

Vanguard has the biggest market share in ETFs listed on the ASX, with $28 billion or about 27.5% of the total, followed by BlackRock's iShares ($20 billion and 20% market share) and BetaShares ($15.6 billion or 15.2%).

Read more: Vanguard