Market data from specialist wealth manager Global X has shown the Australian exchange-traded fund (ETF) market experienced growth of 2.5 per cent in June and now accounts for $280.5 billion in funds under management across 427 products.
The “Global X ETF Market Scoop” report revealed the domestic ETF market grew by 36.1 per cent over the past year, driven by $41.5 billion in net inflows, positive market movements and an unlisted active closed-ended fund converting into an open-ended active ETF (Magellan Global Fund).
Most of the growth was due to Australian equity ETFs, with net inflows of $6.7 billion over the past 12 months. This was followed by global shares ETFs, which recorded net inflows of $6.4 billion, with United States equities ETFs having their own net positive fund flows of $3.4 billion.
On the negative side, active global share ETFs experienced net outflows of $1.8 billion over the past 12 months followed by China stock offerings, where net outflows of $97 million were recorded.
With regard to investment themes, the analysis recognised a sustained increase in digital asset interest.
“Crypto ETFs continued their upward trajectory in June, attracting $71 million in net inflows and marking the 29th consecutive month of positive flows into the category. This consistent momentum has pushed total assets in crypto-related ETFs past $800 million, underscoring the growing appetite for digital assets through regulated, transparent vehicles like ETFs,” Global X noted.
The manager also expects sustained ETF market expansion for years to come as investors choose broad market exposure at a low cost.
“[This will be] driven by the ongoing shift from high-cost funds to low-cost strategies, greater adviser adoption as ETFs become integral to portfolio construction, expanding product innovation and the rapid rise of digital platforms that make investing easier and more accessible for all types of investors,” it stated.
