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The ETFs with the highest inflows in FY 2018

ETF Watch - Jul 12, 2018

One of the unique attributes of Exchange Traded Funds (ETFs) and one which they share with managed funds, is their ability to create new units. This means that theoretically there is no limit to the size that an ETF can get to.

Below we have a look at which ETFs had the highest net inflows last financial year to see where investors have been placing their money. In what has become a year on year trend, the segment added over 30% in assets to close the financial year at $38.87 billion in size.

The 30% growth came as a combination of both capital growth and fund flows, with $7.38 billion in new inflows, up from $5.2 billion last financial year. Below we take a look at where the $7.38 billion came from and share some insights.

Vanguard back on top

Last year we saw Vanguard’s Australian Share Fund (VAS) ranked 5th in total flows, taking $243m in new flows. This year Vanguard’s Australian Shares Fund is back on top, taking $663m in flows. Vanguard actually took 4 of the top 5 positions, cementing their position as the most popular ETF provider in Australia.

More institutional activity

Interestingly, the largest ETF by market capitalisation, the SPDR S&P/ASX 200 Fund (STW), whilst last year taking $295m in flows, this year actually had a small ($8m) outflow. With a large outflow in one month, we suspect this was a institutional investor redeeming funds. Part of VAS’ high flows can also likely be explained by an institutional investor, with almost half of their total inflows coming in one month. The iShares S&P/ASX 200 ETF (IOZ) also saw a large institutional inflow in one month. Institutional investors dominate ETF trades in the more mature US and UK ETF markets, we think this is great, as it helps provide more liquidity in the market for us retail investors.

A shift to global equities

This year was the first year that inflows to global equity funds exceeded Australian equity funds. There’s likely a couple of reasons for this; one being ETFs being a convenient way to access global equities strategies, the other being continued strong performance in global markets enticing investors to invest offshore.

 

Index investing dominates but Smart Beta and Active Manages strategies growing

ETFs were first introduced as cost effective ways for investors to access market indexes. This approach still dominates, with 72% of all flows to ETFs going to index tracking ETFs. In fact, 7 of the top 10 funds by flow are index tracking ETFs. However, with Smart Beta and Actively Managed ETFs accounting for 17% and 11% respectively, it is clear that a growing amount of investors are using Exchange Traded Products to access these types of investments.

 

Fund manager behemoth Platinum joined the top 10 of inflows with their Platinum International Fund (PIXX) an ETF version of their popular managed fund. Only launched in September 2017, it had $235m in flows in the financial year.

Vanguard’s popular high yield strategy (VHY), which we wrote about earlier this year also landed in the top 10, as did Vaneck’s Equal Weight ETF (MVW), who offer an alternative to investors wanting avoid the high concentration at the top end of the Australian share market.

80/20 rule still applies

As per last year, over 80% of all inflows to ETFs can be attributed to the top 20% of funds by inflow, with 81% of flows going to these funds. 64, or 36% of ETFs finished the year with total funds of more than $100m.

Below we list the inflows to all the ETFs on the ASX in the last Financial Year.

Ticker Name Total Inflow (millions) Total Fund Size (millions)
VAS Vanguard Australian Shares Index $663.31 $2,834.01
VGS Vanguard MSCI Index International Series $461.37 $1,097.48
IOZ iShares S&P/ASX 200 ETF $410.33 $1,164.06
VEU Vanguard All-World EX US Shares Index $304.96 $1,243.27
VHY Vanguard Australian Shares High Yield ETF $269.24 $1,075.50
PIXX Platinum International Fund (Quoted Managed Hedge Fund) $235.08 $210.87
MVW VanEck Vectors Australian Equal Weight ETF $222.11 $524.03
QPON BetaShares Australian Bank Senior Floating Rate Bond ETF $221.47 $236.70
BILL iShares Core Cash ETF $186.82 $197.04
IAF iShares UBS Composite Bond ETF $161.17 $583.48
PLUS VanEck Vectors Australian Corporate Bond Plus ETF $158.66 $195.44
FAIR BetaShares Australian Sustainability Leaders ETF $157.89 $164.18
VTS Vanguard US Total Market Shares Index $151.69 $1,343.71
IVV iShares Core S&P 500 $146.05 $2,739.08
VGAD Vanguard MSCI Index International Series (Hedged) $145.22 $412.89
NDQ Betashares NASDAQ 100 $132.63 $340.61
IEU IShares Europe ETF $127.47 $762.46
ETHI BetaShares Global Sustainability Leaders ETF $125.46 $210.02
PAXX Platinum Asia Fund (Quoted Managed Hedge Fund) $110.05 $92.22
QUAL VanEck Vectors MSCI World Ex-Australia ETF $108.22 $381.41
QRE Beta Shares S&P/ASX 200 Resources Sector ETF $106.21 $147.77
IAA iShares Asia 50 ETF $105.84 $433.94
ROBO ETFS ROBO Global Robotics and Automation ETF $104.56 $103.66
VEQ Vanguard FTSE Europe Shares ETF $103.98 $193.63
HBRD BetaShares Active Australian Hybrids Fund (managed fund) $100.50 $100.10
IEM iShares MSCI Emerging Markets ETF $97.50 $615.12
VAP Vanguard Australian Property Securities Index ETF $96.71 $1,024.33
VIF Vanguard International Fixed Interest (Hedged) ETF $96.16 $196.25
MICH Magellan Infrastructure Fund (Currency Hedged) (Managed Fund) $90.70 $179.30
DJRE SPDR Dow Jones Global Real Estate Fund $89.27 $242.48
VACF Vanguard Australian Corporate Fixed Interest Index ETF $88.58 $126.67
VGE Vanguard FTSE Emerging Markets Shares $88.34 $203.95
MGE Magellan Global Equities Fund $86.02 $1,051.31
FLOT Vaneck Vectors Australian Floating Rate ETF $85.38 $85.28
IOO IShares Global 100 ETF $83.51 $1,404.20
MOGL Montgomery Global Equities Fund (Managed Fund) $76.37 $81.28
VSO Vanguard MSCI Australian Small Companies Index $76.04 $189.31
IJP iShares MSCI Japan ETF $68.11 $262.71
VDHG Vanguard Diversified High Growth Index ETF $68.01 $64.92
VAE Vanguard FTSE Asia ex Japan Shares Index ETF $67.68 $97.29
AAA Betashares Australian High Interest Cash ETF $64.89 $1,310.72
VAF Vanguard Australian Fixed Interest Index $60.84 $704.84
IJR iShares Core S&P SmallCap 600 $57.35 $165.64
WDMF iShares Edge MSCI World Multifactor ETF $55.69 $70.99
MVR VanEck Vectors Australian Resources ETF $55.22 $96.84
ESTX ETFS EURO STOXX 50® ETF $54.93 $65.02
SFY SPDR S&P/ASX 50 Fund $52.52 $514.99
WDIV SPDR S&P Global Dividend Fund $50.57 $169.86
MVA VanEck Vectors Australian Property ETF $50.36 $119.87
GOLD ETFS Physical Gold $49.85 $591.17
MVE VanEck Vectors S&P/ASX  MidCap ETF $48.21 $88.82
A200 Betashares Australia 200 ETF $47.89 $49.64
HACK BetaShares Global Cybersecurity ETF $47.13 $87.35
IVE iShares MSCI EAFE ETF $46.22 $330.61
TECH ETFS Morningstar Global Technology ETF $44.09 $57.67
ZYAU ETFS S&P/ASX 300 High Yield Plus ETF $42.74 $63.53
IFRA VanEck Vectors FTSE Global Infrastructure (Hedged) ETF $39.90 $77.07
VDGR Vanguard Diversified Growth Index ETF $34.83 $33.42
INIF InvestSMART Australian Equity Income Fund (Managed Fund) $34.25 $34.25
BNKS BetaShares Global Banks ETF - Currency Hedged $33.69 $71.79
RCB Russell Australian Select Corporate Bond ETF $33.47 $165.36
ISEC iShares Enhanced Cash ETF $31.10 $36.13
ISO iShares S&P/ASX Small Ordinaries ETF $30.35 $106.05
UBA UBS IQ MSCI Australia Ethical ETF $29.11 $204.60
OZR SPDR S&P/ASX 200 Resources Fund $27.15 $73.44
ILB iShares UBS Government Inflation ETF $24.89 $117.08
QOZ BetaShares FTSE RAFI Australia 200 ETF $24.66 $289.17
HJPN BetaShares WisdomTree Japan ETF - Currency Hedged $24.38 $63.68
VDBA Vanguard Diversified Balanced Index ETF $23.80 $23.65
EX20 BetaShares Australian Ex-20 Portfolio Diversifier ETF $22.74 $36.60
FUEL BetaShares Global Energy Companies ETF - Currency Hedged $20.74 $28.87
BBUS Betashares US Eq Strong Bear Hedged Fund $20.68 $59.23
IWLD iShares Core MSCI World All Cap ETF $17.46 $29.42
EIGA eInvest Income Generator Fund (Managed Fund) $17.11 $17.74
VBND Vanguard Global Aggregate Bond Index (Hedged) ETF $16.78 $16.73
RDV Russell High Dividend Australian Shares ETF $16.42 $281.66
IHCB iShares Global Corporate Bond ETF (Hedged) $15.05 $80.74
IZZ iShares China Large-Cap ETF $14.52 $96.40
EINC BetaShares Legg Mason Equity Income Fund (managed fund) $12.76 $12.89
DMKT AMP Capital Dynamic Markets Fund (Hedge Fund) $11.17 $28.85
SMLL BetaShares Australian Small Companies Select Fund (managed fund) $11.14 $22.40
GROW Schroder Real Return Fund (Managed Fund) $10.68 $47.15
SWTZ Switzer Dividend Growth Fund (Managed Fund) $10.07 $77.48
RINC BetaShares Legg Mason Real Income Fund (managed fund) $9.90 $10.47
IHVV iShares S&P 500 AUD Hedged $9.70 $107.85
VDCO Vanguard Diversified Conservative Index ETF $9.56 $9.67
MHG Magellan Global Equities Fund Currency Hedged (Managed Fund) $9.00 $67.14
PMGOLD Perth Mint Gold $8.79 $132.54
IHHY iShares Global High Yield Bond (Hedged) ETF $8.69 $26.17
GDX VanEck Vectors Gold Miners ETF $8.62 $68.89
FOOD BetaShares Global Agriculture Companies ETF - Currency Hedged $8.28 $17.38
MOAT Vaneck Vectors Morningstar Wide Moat ETF $8.23 $58.90
IHD iShares S&P/ASX Dividend Opportunities Fund ETF $7.93 $257.47
CETF VanEck Vectors ChinaAMC A-Share ETF $7.93 $10.14
MVB VanEck Vectors Australian Banks ETF $7.79 $35.45
IHOO iShares Global 100 AUD Hedged $7.72 $36.85
BBOZ BetaShares Australian Equities Strong Bear (Hedge Fund) $7.71 $89.25
ZUSD ETFS Physical US Dollar ETF $7.68 $19.87
VLC Vanguard MSCI Australian Large Companies Index $7.59 $83.68
SSO SPDR S&P/ASX Small Ordinaries Fund $7.09 $21.62
UBW UBS IQ MSCI World ex Australia Ethical ETF $6.73 $29.25
GGUS Betashares Geared US Equity Fund - Currency Hedged (Hedge Fund) $6.65 $17.66
IHEB iShares J.P. Morgan USD Emerging Markets Bond (AUD Hedged) ETF $6.48 $13.07
QUS Betashares FTSE RAFI US 1000 ETF $6.39 $41.41
IHWL iShares Core MSCI World All Cap (AUD Hedged) ETF $6.37 $12.03
DRUG BetaShares Global Healthcare ETF - Currency Hedged $5.61 $24.55
VGB Vanguard Australian Government Bond Index ETF $5.32 $137.18
HEUR BetaShares WisdomTree Europe ETF - Currency Hedged $5.19 $49.64
VCF Vanguard International Credit Securities Index (Hedged) ETF $4.97 $99.42
UBP UBS IQ MSCI Asia APREX 50 Ethical ETF $4.64 $8.94
YANK BetaShares Strong U.S. Dollar Fund (hedge fund) $4.54 $11.88
MVS VanEck Vectors Small Cap Dividend Payers ETF $4.31 $70.48
CRED BetaShares Australian Investment Grade Corporate Bond ETF $4.02 $4.02
ESGI VanEck Vectors MSCI International Sustainable Equity ETF $4.02 $4.17
IJH iShares Core S&P MidCap 400 $3.90 $143.27
RARI Russell Australian Responsible Investment ETF $3.85 $70.74
ZYUS ETFS S&P 500 High Yield Low Volatility ETF $3.51 $51.67
EEU BetaShares Euro ETF $3.35 $8.24
AUDS BetaShares Strong Australian Dollar Fund (hedge fund) $3.16 $4.19
WEMG SPDR S&P Emerging Markets Fund $3.15 $19.55
CORE ETFS Global Core Infrastructure ETF $3.11 $3.18
UBE UBS IQ MSCI Europe Ethical ETF $3.04 $11.07
AUMF iShares Edge MSCI Australia Multifactor ETF $2.31 $9.55
OZF SPDR S&P/ASX 200 Financials ex A-REITS Fund $2.26 $62.91
QMIX SPDR MSCI World Quality Mix Fund $1.80 $8.44
ETPMAG ETFS Physical Silver $1.58 $58.49
VVLU Vanguard Global Value Equity Active ETF (Managed Fund) $1.58 $6.31
GEAR BetaShares Geared Australian Equity Fund (Hedge Fund) $1.23 $75.23
QCB BetaShares Commodities Basket ETF - Currency Hedged (Synthetic) $1.12 $11.07
IGB IShares UBS Treasury ETF $1.05 $30.86
UBJ UBS IQ MSCI Japan Ethical ETF $0.96 $4.55
GLIN AMP Capital Global Infrastructure Securities Fund (unhedged) (managed fund) $0.85 $23.56
QAG BetaShares Agricultural ETF - Currency Hedged (Synthetic) $0.57 $2.92
RSM Russell Australian Semi-Government Bond ETF  $0.12 $61.14
RGB Russell Australian Government Bond ETF $0.04 $60.53
FDIV VanEck Vectors S&P/ASX  Franked Dividend ETF $0.03 $3.91
UBU UBS IQ MSCI USA Ethical ETF $0.01 $6.79
MNRS Betashares Global Gold Miners ETF - Currency Hedged $0.00 $5.08
MONY UBS IQ Cash ETF $0.00 $1.00
ETPMPM ETFS Physical Precious Metal Basket $0.00 $5.02
ZCNH ETFS Physical Renminbi ETF $0.00 $0.49
ZGOL ETFS Physical Gold ETF $0.00 $13.47
EMKT VanEck Vectors MSCI Multifactor Emerging Markets Equity ETF $0.00 $3.86
VMIN Vanguard Global Minimum Volatility Active ETF (Managed Fund) $0.00 $2.07
WXOZ SPDR S&P World Ex Australia Fund -$0.23 $171.51
RENT AMP Capital Global Property Securities Fund (unhedged) (managed fund) -$0.36 $14.93
ETPMPD ETFS Physical Palladium -$1.15 $1.12
QAU BetaShares Gold Bullion ETF - Currency Hedged -$1.15 $57.21
IKO iShares MSCI South Korea Capped ETF -$1.72 $41.84
UMAX Betashares S&P500 Yield Maximiser Fund (Managed Fund) -$1.81 $93.31
AOD Aurora Dividend Income Trust (Managed Fund) -$2.19 $6.93
WVOL iShares Edge MSCI World Minimum Volatility ETF -$2.20 $10.51
WXHG SPDR S&P World Ex Australia (Hedged) Fund -$2.23 $82.47
SPY SPDR S&P 500 ETF Trust -$2.44 $21.91
GOVT SPDR S&P/ASX Australian Government Bond Fund -$2.54 $12.98
KSM K2 Australian Small Cap Fund -$2.79 $14.00
ETPMPT ETFS Physical Platinum -$3.55 $1.14
QFN Beta Shares S&P/ASX 200 Financials Sector ETF -$4.51 $22.26
MVOL iShares Edge MSCI Australia Minimum Volatility ETF -$4.56 $2.28
BOND SPDR S&P/ASX Australian Bond Fund -$5.02 $23.48
IXJ iShares Global Healthcare ETF -$5.14 $491.90
BEAR BetaShares Australian Equities Bear (Hedge Fund) -$6.09 $51.20
STW SPDR S&P/ASX 200 Fund -$8.25 $3,794.12
KII K2 Global Equities Fund (Hedge Fund) -$8.82 $17.12
AUST Betashares Managed Risk Australian Share Fund -$11.31 $21.71
ILC iShares S&P/ASX 20 ETF -$13.07 $319.35
WRLD Betashares Managed Risk Global Share Fund -$14.25 $28.82
YMAX BetaShares Australian Top 20 Equity Yield Maximiser Fund -$15.48 $373.95
DIV UBS IQ Morningstar Australia Dividend Yield ETF -$16.17 $11.12
SYI SPDR MSCI Australia Select High Dividend Yield Fund -$16.86 $164.32
ETF UBS IQ Morningstar Australia Quality ETF -$19.44 $8.37
SLF SPDR S&P/ASX 200 Listed Property Fund -$21.00 $554.02
ITW iShares MSCI Taiwan ETF -$22.33 $47.84
ZOZI ETFS S&P/ASX 100 ETF -$23.07 $9.47
OOO BetaShares Crude Oil Index ETF- Currency Hedged (Synthetic) -$23.20 $32.78
POU BetaShares British Pound ETF -$36.15 $20.98
IXI iShares Global Consumer Staples ETF -$39.70 $107.10
USD BetaShares U.S. Dollar ETF -$67.14 $462.91
HVST BetaShares Australian Dividend Harvester Fund (Managed Fund) -$189.87 $199.08
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2018 Financial Year ETF & LIC Performance Report

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