The Australian ETF industry reached $150 billion in funds under management during June 2023, according to analysis of security exchanges ASX and CBOE by Betashares.
So far this year, the ETF industry has received $4.8 billion in net inflows. In comparison, Morningstar data shows that unlisted funds have seen estimated net outflows of $23.4 billion between January and May.
Regarding categories, fixed income resonated the most with investors during 2023, receiving $2.5 billion in net inflows so far this year. Australian equities and cash round out the top three exposures with $1.6 billion and $688 million in net inflows this year, respectively.
Nearly half of all investor assets ($74.6 billion) are held in international equities exposures across the ETF industry. This is followed by Australian equities ($39 billion) and fixed income ($17.9 billion).
Since the inception of the ETF industry in November 2001, the industry has seen a compound annual growth rate of 43 per cent per annum.
The analysis of flows also revealed that Betashares recorded the largest net inflows in the industry in the half year to 30 June with about $1.8 billion of net inflows, followed by Vanguard at around $1.5 billion and iShares at approximately $1.1 billion.
Collectively, the top three issuers accounted for roughly 80 per cent of the industry’s flows so far in 2023; however, over 40 ETF issuers are now operating in Australia.
Due to investors’ ongoing interest in ETFs, Betashares now believes the industry could exceed $160 billion by the end of the year.