“Strongest Start Ever”: Australian ETF Market breaks $200 billion record
The Australian ETF market grew 37.3% over the past year to $206.2 billion across 380 products, according to the Global X ETFs Australia ETF Landscape report.
Growth was driven by more than $21.4 billion in net inflows, positive market movements, and the conversion of numerous unlisted active funds into active ETFs.
Global X ETFs Product and Investment Strategist, Marc Jocum said, “It’s the strongest start ever for the Australian ETF market. In fact, we could surpass the calendar year record of $23.6 billion set in 2021, and potentially reach an industry valuation of $1 trillion by 2030 if this momentum continues.”
“It took nearly 20 years to reach $100 billion, but the next $100 billion was achieved in just over three years. Today, the Australian ETF market is growing at a faster rate than the US and has quadrupled its share in the Australian funds market over the past six years.”
Global shares ETFs were the year’s most popular asset class as Australian investors shifted to a ‘risk on’ position. Approximately $6 billion has been allocated to this category in 2024, representing 55% of the total market net flows. In 2023, bond ETFs were one of the most popular asset classes, capturing 37% of annual net flows.
“Artificial intelligence, regional pockets of investor interest, and fixed income are the three main trends which we expect will accelerate into the second half of 2024,” Jocum said.
Global X ETFs expects investment vehicles which are generally lower cost, like ETFs, will continue to steal market share over the next decade at the expense of traditional managed funds. Still, the market is in its infancy, with ETFs accounting for just under 5% of the total Australian funds market.
Head of Sales, Manny Damianakis said the Global X Australian ETF Landscape report has been a cornerstone for clients for more than eight years, aiming to empower investors to make informed decisions. Global X is committed to providing clients with intelligent solutions supported by industry-leading research.
“Our unique combination of international resources paired with local expertise allows us to explore innovative opportunities across thematic, income, commodity, digital assets and core solutions. Our expanding range of innovation-led ETFs reflects our investor-first philosophy of delivering the highest quality products to Australian investors,” Damianakis said.
