ROOT
Aussie investors drive record growth for ETFs
The market cap of the Australian ETF industry has reached another all-time high.
Aussie investors drive record growth for ETFs
The market cap of the Australian ETF industry has reached another all-time high.
The Australian ETF industry ended 2021 with a market capitalisation of $136.9 billion, according to BetaShares, an increase of $41.8 billion or 44 per cent on the previous year.
This was the largest growth ever for local ETFs in dollar terms but was down slightly in percentage terms from the growth of over 50 per cent seen in both 2019 and 2020.
Inflows totalled $23.2 billion for the year, 13 per cent higher than 2020 and the highest net flows on record.
Market appreciation was a key driver of growth for the industry and accounted for 45 per cent of the total growth for the year.
BetaShares chief commercial officer Ilan Israelstam said that the firm’s forecast last year of $110-$120 billion in funds under management for 2021 had been “smashed”.
“In terms of 2022, we believe the industry will continue to grow strongly, although we doubt it will be as assisted by the market as occurred in 2020,” he said.
“We forecast total industry FuM at end 2022 to be in the range of $180-$190 billion.”
Late last year, BetaShares and Investment Trends reported that the total number of ETF investors in Australia had grown 33 per cent to 1.73 million in 2021.
The two firms also predicted that the number of ETF investors would surpass 2 million by the end of this year.
In its review of the ETF industry, BetaShares said that trading values had fallen slightly from $99 billion in 2020 to $96 billion in 2021.
Flows during the year were described as being “highly concentrated” towards Vanguard (35.2 per cent), BetaShares (26.4 per cent) and iShares (13.2 per cent), which collectively accounted for 75 per cent of industry flows compared to 70 per cent in the previous year.
Thirty-three new products were launched, while nine products were closed or matured for a total of 280 exchange-traded products as of the end of 2021.
“Notably 40 per cent (13 funds) of the new launches were active ETFs with almost all being via the creation of traded classes of existing unlisted funds,” said Mr Israelstam.
“We are predicting a record year of new product launches in 2022, as the industry continues to evolve and mature.”
RELATED ARTICLES
Invest
Finity and Ortec Finance join forces to enhance climate risk analysis for Australian investment portfolios
In a significant move aimed at bolstering the financial sector's ability to tackle climate-related risks, Finity, Australia's leading independent actuarial and strategic analytics firm, has announced ...Read more
Invest
Australia’s 5% deposit guarantee accelerates: relief for buyers, reckoning for lenders
Bringing forward Australia’s expanded 5% deposit guarantee to 1 October 2025 changes the mechanics of first-home finance and the economics of mortgage risk overnight. By removing income caps and place ...Read more
Invest
Australia's performance test shake-up is rewriting the investment playbook
Australia’s performance test has been a powerful accountability tool—exposing laggards and accelerating consolidation. But industry bodies now back targeted reforms to stop the test from ...Read more
Invest
Financial Basics Community Foundation receives major grant to boost financial literacy for disadvantaged youth
In a significant step toward enhancing financial literacy among disadvantaged young Australians, the Financial Basics Community Foundation (FBCF) has secured a substantial grant from the MetLife ...Read more
Invest
Dynamoney appoints Brett Thomas as CEO to spearhead growth and innovation
Dynamoney, a prominent player in the commercial finance sector for Australian small and medium enterprises (SMEs), has announced the appointment of Brett Thomas as its new Chief Executive OfficerRead more
Invest
Brokers’ wishlist, nation’s payoff: approvals, tax and AI as the new housing‑finance flywheel
Mortgage brokers aren’t just pleading sectoral special interests. Their asks—faster planning approvals, targeted tax recalibration and scaled AI—are levers to lift national productivity, unlock ...Read more
Invest
Waikiki's wave of opportunity how investors are surfing growth and risk in Perth's southern shores
Waikiki, a coastal suburb in Perth’s south, is drawing capital for the rare mix of affordability, rental tightness and billion‑dollar defence‑led infrastructure nearby. Yet the market is not one‑way ...Read more
Invest
State Street Investment Management holds steady on ETF model portfolio allocations
State Street Investment Management has maintained its asset allocation for its Risk-Based and Target Income ETF Model Portfolios despite market volatility and adjustments by other major players in the ...Read more
Invest
Finity and Ortec Finance join forces to enhance climate risk analysis for Australian investment portfolios
In a significant move aimed at bolstering the financial sector's ability to tackle climate-related risks, Finity, Australia's leading independent actuarial and strategic analytics firm, has announced ...Read more
Invest
Australia’s 5% deposit guarantee accelerates: relief for buyers, reckoning for lenders
Bringing forward Australia’s expanded 5% deposit guarantee to 1 October 2025 changes the mechanics of first-home finance and the economics of mortgage risk overnight. By removing income caps and place ...Read more
Invest
Australia's performance test shake-up is rewriting the investment playbook
Australia’s performance test has been a powerful accountability tool—exposing laggards and accelerating consolidation. But industry bodies now back targeted reforms to stop the test from ...Read more
Invest
Financial Basics Community Foundation receives major grant to boost financial literacy for disadvantaged youth
In a significant step toward enhancing financial literacy among disadvantaged young Australians, the Financial Basics Community Foundation (FBCF) has secured a substantial grant from the MetLife ...Read more
Invest
Dynamoney appoints Brett Thomas as CEO to spearhead growth and innovation
Dynamoney, a prominent player in the commercial finance sector for Australian small and medium enterprises (SMEs), has announced the appointment of Brett Thomas as its new Chief Executive OfficerRead more
Invest
Brokers’ wishlist, nation’s payoff: approvals, tax and AI as the new housing‑finance flywheel
Mortgage brokers aren’t just pleading sectoral special interests. Their asks—faster planning approvals, targeted tax recalibration and scaled AI—are levers to lift national productivity, unlock ...Read more
Invest
Waikiki's wave of opportunity how investors are surfing growth and risk in Perth's southern shores
Waikiki, a coastal suburb in Perth’s south, is drawing capital for the rare mix of affordability, rental tightness and billion‑dollar defence‑led infrastructure nearby. Yet the market is not one‑way ...Read more
Invest
State Street Investment Management holds steady on ETF model portfolio allocations
State Street Investment Management has maintained its asset allocation for its Risk-Based and Target Income ETF Model Portfolios despite market volatility and adjustments by other major players in the ...Read more
