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The ETFs with the highest inflows in FY 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 to grow their size. We take a look at the ETFs with the highest inflows in the 2018 Financial Year.

By 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.

TickerNameTotal Inflow (millions)Total Fund Size (millions)
VASVanguard Australian Shares Index$663.31$2,834.01
VGSVanguard MSCI Index International Series$461.37$1,097.48
IOZiShares S&P/ASX 200 ETF$410.33$1,164.06
VEUVanguard All-World EX US Shares Index$304.96$1,243.27
VHYVanguard Australian Shares High Yield ETF$269.24$1,075.50
PIXXPlatinum International Fund (Quoted Managed Hedge Fund)$235.08$210.87
MVWVanEck Vectors Australian Equal Weight ETF$222.11$524.03
QPONBetaShares Australian Bank Senior Floating Rate Bond ETF$221.47$236.70
BILLiShares Core Cash ETF$186.82$197.04
IAFiShares UBS Composite Bond ETF$161.17$583.48
PLUSVanEck Vectors Australian Corporate Bond Plus ETF$158.66$195.44
FAIRBetaShares Australian Sustainability Leaders ETF$157.89$164.18
VTSVanguard US Total Market Shares Index$151.69$1,343.71
IVViShares Core S&P 500$146.05$2,739.08
VGADVanguard MSCI Index International Series (Hedged)$145.22$412.89
NDQBetashares NASDAQ 100$132.63$340.61
IEUIShares Europe ETF$127.47$762.46
ETHIBetaShares Global Sustainability Leaders ETF$125.46$210.02
PAXXPlatinum Asia Fund (Quoted Managed Hedge Fund)$110.05$92.22
QUALVanEck Vectors MSCI World Ex-Australia ETF$108.22$381.41
QREBeta Shares S&P/ASX 200 Resources Sector ETF$106.21$147.77
IAAiShares Asia 50 ETF$105.84$433.94
ROBOETFS ROBO Global Robotics and Automation ETF$104.56$103.66
VEQVanguard FTSE Europe Shares ETF$103.98$193.63
HBRDBetaShares Active Australian Hybrids Fund (managed fund)$100.50$100.10
IEMiShares MSCI Emerging Markets ETF$97.50$615.12
VAPVanguard Australian Property Securities Index ETF$96.71$1,024.33
VIFVanguard International Fixed Interest (Hedged) ETF$96.16$196.25
MICHMagellan Infrastructure Fund (Currency Hedged) (Managed Fund)$90.70$179.30
DJRESPDR Dow Jones Global Real Estate Fund$89.27$242.48
VACFVanguard Australian Corporate Fixed Interest Index ETF$88.58$126.67
VGEVanguard FTSE Emerging Markets Shares$88.34$203.95
MGEMagellan Global Equities Fund$86.02$1,051.31
FLOTVaneck Vectors Australian Floating Rate ETF$85.38$85.28
IOOIShares Global 100 ETF$83.51$1,404.20
MOGLMontgomery Global Equities Fund (Managed Fund)$76.37$81.28
VSOVanguard MSCI Australian Small Companies Index$76.04$189.31
IJPiShares MSCI Japan ETF$68.11$262.71
VDHGVanguard Diversified High Growth Index ETF$68.01$64.92
VAEVanguard FTSE Asia ex Japan Shares Index ETF$67.68$97.29
AAABetashares Australian High Interest Cash ETF$64.89$1,310.72
VAFVanguard Australian Fixed Interest Index$60.84$704.84
IJRiShares Core S&P SmallCap 600$57.35$165.64
WDMFiShares Edge MSCI World Multifactor ETF$55.69$70.99
MVRVanEck Vectors Australian Resources ETF$55.22$96.84
ESTXETFS EURO STOXX 50® ETF$54.93$65.02
SFYSPDR S&P/ASX 50 Fund$52.52$514.99
WDIVSPDR S&P Global Dividend Fund$50.57$169.86
MVAVanEck Vectors Australian Property ETF$50.36$119.87
GOLDETFS Physical Gold$49.85$591.17
MVEVanEck Vectors S&P/ASX  MidCap ETF$48.21$88.82
A200Betashares Australia 200 ETF$47.89$49.64
HACKBetaShares Global Cybersecurity ETF$47.13$87.35
IVEiShares MSCI EAFE ETF$46.22$330.61
TECHETFS Morningstar Global Technology ETF$44.09$57.67
ZYAUETFS S&P/ASX 300 High Yield Plus ETF$42.74$63.53
IFRAVanEck Vectors FTSE Global Infrastructure (Hedged) ETF$39.90$77.07
VDGRVanguard Diversified Growth Index ETF$34.83$33.42
INIFInvestSMART Australian Equity Income Fund (Managed Fund)$34.25$34.25
BNKSBetaShares Global Banks ETF – Currency Hedged$33.69$71.79
RCBRussell Australian Select Corporate Bond ETF$33.47$165.36
ISECiShares Enhanced Cash ETF$31.10$36.13
ISOiShares S&P/ASX Small Ordinaries ETF$30.35$106.05
UBAUBS IQ MSCI Australia Ethical ETF$29.11$204.60
OZRSPDR S&P/ASX 200 Resources Fund$27.15$73.44
ILBiShares UBS Government Inflation ETF$24.89$117.08
QOZBetaShares FTSE RAFI Australia 200 ETF$24.66$289.17
HJPNBetaShares WisdomTree Japan ETF – Currency Hedged$24.38$63.68
VDBAVanguard Diversified Balanced Index ETF$23.80$23.65
EX20BetaShares Australian Ex-20 Portfolio Diversifier ETF$22.74$36.60
FUELBetaShares Global Energy Companies ETF – Currency Hedged$20.74$28.87
BBUSBetashares US Eq Strong Bear Hedged Fund$20.68$59.23
IWLDiShares Core MSCI World All Cap ETF$17.46$29.42
EIGAeInvest Income Generator Fund (Managed Fund)$17.11$17.74
VBNDVanguard Global Aggregate Bond Index (Hedged) ETF$16.78$16.73
RDVRussell High Dividend Australian Shares ETF$16.42$281.66
IHCBiShares Global Corporate Bond ETF (Hedged)$15.05$80.74
IZZiShares China Large-Cap ETF$14.52$96.40
EINCBetaShares Legg Mason Equity Income Fund (managed fund)$12.76$12.89
DMKTAMP Capital Dynamic Markets Fund (Hedge Fund)$11.17$28.85
SMLLBetaShares Australian Small Companies Select Fund (managed fund)$11.14$22.40
GROWSchroder Real Return Fund (Managed Fund)$10.68$47.15
SWTZSwitzer Dividend Growth Fund (Managed Fund)$10.07$77.48
RINCBetaShares Legg Mason Real Income Fund (managed fund)$9.90$10.47
IHVViShares S&P 500 AUD Hedged$9.70$107.85
VDCOVanguard Diversified Conservative Index ETF$9.56$9.67
MHGMagellan Global Equities Fund Currency Hedged (Managed Fund)$9.00$67.14
PMGOLDPerth Mint Gold$8.79$132.54
IHHYiShares Global High Yield Bond (Hedged) ETF$8.69$26.17
GDXVanEck Vectors Gold Miners ETF$8.62$68.89
FOODBetaShares Global Agriculture Companies ETF – Currency Hedged$8.28$17.38
MOATVaneck Vectors Morningstar Wide Moat ETF$8.23$58.90
IHDiShares S&P/ASX Dividend Opportunities Fund ETF$7.93$257.47
CETFVanEck Vectors ChinaAMC A-Share ETF$7.93$10.14
MVBVanEck Vectors Australian Banks ETF$7.79$35.45
IHOOiShares Global 100 AUD Hedged$7.72$36.85
BBOZBetaShares Australian Equities Strong Bear (Hedge Fund)$7.71$89.25
ZUSDETFS Physical US Dollar ETF$7.68$19.87
VLCVanguard MSCI Australian Large Companies Index$7.59$83.68
SSOSPDR S&P/ASX Small Ordinaries Fund$7.09$21.62
UBWUBS IQ MSCI World ex Australia Ethical ETF$6.73$29.25
GGUSBetashares Geared US Equity Fund – Currency Hedged (Hedge Fund)$6.65$17.66
IHEBiShares J.P. Morgan USD Emerging Markets Bond (AUD Hedged) ETF$6.48$13.07
QUSBetashares FTSE RAFI US 1000 ETF$6.39$41.41
IHWLiShares Core MSCI World All Cap (AUD Hedged) ETF$6.37$12.03
DRUGBetaShares Global Healthcare ETF – Currency Hedged$5.61$24.55
VGBVanguard Australian Government Bond Index ETF$5.32$137.18
HEURBetaShares WisdomTree Europe ETF – Currency Hedged$5.19$49.64
VCFVanguard International Credit Securities Index (Hedged) ETF$4.97$99.42
UBPUBS IQ MSCI Asia APREX 50 Ethical ETF$4.64$8.94
YANKBetaShares Strong U.S. Dollar Fund (hedge fund)$4.54$11.88
MVSVanEck Vectors Small Cap Dividend Payers ETF$4.31$70.48
CREDBetaShares Australian Investment Grade Corporate Bond ETF$4.02$4.02
ESGIVanEck Vectors MSCI International Sustainable Equity ETF$4.02$4.17
IJHiShares Core S&P MidCap 400$3.90$143.27
RARIRussell Australian Responsible Investment ETF$3.85$70.74
ZYUSETFS S&P 500 High Yield Low Volatility ETF$3.51$51.67
EEUBetaShares Euro ETF$3.35$8.24
AUDSBetaShares Strong Australian Dollar Fund (hedge fund)$3.16$4.19
WEMGSPDR S&P Emerging Markets Fund$3.15$19.55
COREETFS Global Core Infrastructure ETF$3.11$3.18
UBEUBS IQ MSCI Europe Ethical ETF$3.04$11.07
AUMFiShares Edge MSCI Australia Multifactor ETF$2.31$9.55
OZFSPDR S&P/ASX 200 Financials ex A-REITS Fund$2.26$62.91
QMIXSPDR MSCI World Quality Mix Fund$1.80$8.44
ETPMAGETFS Physical Silver$1.58$58.49
VVLUVanguard Global Value Equity Active ETF (Managed Fund)$1.58$6.31
GEARBetaShares Geared Australian Equity Fund (Hedge Fund)$1.23$75.23
QCBBetaShares Commodities Basket ETF – Currency Hedged (Synthetic)$1.12$11.07
IGBIShares UBS Treasury ETF$1.05$30.86
UBJUBS IQ MSCI Japan Ethical ETF$0.96$4.55
GLINAMP Capital Global Infrastructure Securities Fund (unhedged) (managed fund)$0.85$23.56
QAGBetaShares Agricultural ETF – Currency Hedged (Synthetic)$0.57$2.92
RSMRussell Australian Semi-Government Bond ETFÂ$0.12$61.14
RGBRussell Australian Government Bond ETF$0.04$60.53
FDIVVanEck Vectors S&P/ASX  Franked Dividend ETF$0.03$3.91
UBUUBS IQ MSCI USA Ethical ETF$0.01$6.79
MNRSBetashares Global Gold Miners ETF – Currency Hedged$0.00$5.08
MONYUBS IQ Cash ETF$0.00$1.00
ETPMPMETFS Physical Precious Metal Basket$0.00$5.02
ZCNHETFS Physical Renminbi ETF$0.00$0.49
ZGOLETFS Physical Gold ETF$0.00$13.47
EMKTVanEck Vectors MSCI Multifactor Emerging Markets Equity ETF$0.00$3.86
VMINVanguard Global Minimum Volatility Active ETF (Managed Fund)$0.00$2.07
WXOZSPDR S&P World Ex Australia Fund-$0.23$171.51
RENTAMP Capital Global Property Securities Fund (unhedged) (managed fund)-$0.36$14.93
ETPMPDETFS Physical Palladium-$1.15$1.12
QAUBetaShares Gold Bullion ETF – Currency Hedged-$1.15$57.21
IKOiShares MSCI South Korea Capped ETF-$1.72$41.84
UMAXBetashares S&P500 Yield Maximiser Fund (Managed Fund)-$1.81$93.31
AODAurora Dividend Income Trust (Managed Fund)-$2.19$6.93
WVOLiShares Edge MSCI World Minimum Volatility ETF-$2.20$10.51
WXHGSPDR S&P World Ex Australia (Hedged) Fund-$2.23$82.47
SPYSPDR S&P 500 ETF Trust-$2.44$21.91
GOVTSPDR S&P/ASX Australian Government Bond Fund-$2.54$12.98
KSMK2 Australian Small Cap Fund-$2.79$14.00
ETPMPTETFS Physical Platinum-$3.55$1.14
QFNBeta Shares S&P/ASX 200 Financials Sector ETF-$4.51$22.26
MVOLiShares Edge MSCI Australia Minimum Volatility ETF-$4.56$2.28
BONDSPDR S&P/ASX Australian Bond Fund-$5.02$23.48
IXJiShares Global Healthcare ETF-$5.14$491.90
BEARBetaShares Australian Equities Bear (Hedge Fund)-$6.09$51.20
STWSPDR S&P/ASX 200 Fund-$8.25$3,794.12
KIIK2 Global Equities Fund (Hedge Fund)-$8.82$17.12
AUSTBetashares Managed Risk Australian Share Fund-$11.31$21.71
ILCiShares S&P/ASX 20 ETF-$13.07$319.35
WRLDBetashares Managed Risk Global Share Fund-$14.25$28.82
YMAXBetaShares Australian Top 20 Equity Yield Maximiser Fund-$15.48$373.95
DIVUBS IQ Morningstar Australia Dividend Yield ETF-$16.17$11.12
SYISPDR MSCI Australia Select High Dividend Yield Fund-$16.86$164.32
ETFUBS IQ Morningstar Australia Quality ETF-$19.44$8.37
SLFSPDR S&P/ASX 200 Listed Property Fund-$21.00$554.02
ITWiShares MSCI Taiwan ETF-$22.33$47.84
ZOZIETFS S&P/ASX 100 ETF-$23.07$9.47
OOOBetaShares Crude Oil Index ETF- Currency Hedged (Synthetic)-$23.20$32.78
POUBetaShares British Pound ETF-$36.15$20.98
IXIiShares Global Consumer Staples ETF-$39.70$107.10
USDBetaShares U.S. Dollar ETF-$67.14$462.91
HVSTBetaShares Australian Dividend Harvester Fund (Managed Fund)-$189.87$199.08

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