ETFs post 37pc YoY growth on the way to $129B in AUM

The domestic exchange traded funds market continued its surge with $9 billion in cash flows across Q3 according to figures released by the ASX and Vanguard.

The sector now represents over $129 billion worth of investments in Australia.

ETF investments have now increased by $35 billion in the past year, a growth margin of 37 per cent.

“It’s encouraging to see such uptake of ETFs,” said Minh Tieu, Vanguard’s Head of ETF Capital Markets, Asia-Pacific. “The inherent diversification benefits of ETFs coupled with their low-cost, easily-accessible nature makes them an increasingly popular investment option for both new and seasoned investors alike…”

While the market for ETF’s may plateau as the quantum of investors new to the product suite flattens out, Tieu believes the sector will continue to attract exponentially increasing levels of inflow.

“If this momentum continues and we stay on the same growth trajectory as the last few years, we estimate the Australian ETF industry will reach the next A$100 billion of AUM in half the time it took to reach the first A$100 billion – which would be a remarkable feat.”