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Rounding out the 2019 Financial Year, ETFs hit $50 billion last month, We take a look at where the flows went and the trends we are spotting from the data.
When the ETF market closed in on $40 billion last financial year, we knew it was only a matter of time until the $50 billion milestone was hit. Rounding out the 2019 Financial Year, the milestone was hit last month, with the Australian ETF market closing at $50.59 billion, adding 30% in size from the previous year, a trend that has continued for a number of years now.
The majority of the last year’s growth came from new inflows, with $8.4 billion coming from new flows, up from $7.4 billion last year and $5.2 billion the year prior. Below we take a look at which funds saw the majority of these flows and share some insights that they bring.
Not surprisingly, the three most popular funds by flows over the last year are three of the lowest costs ETFs available to investors, with relative newcomer and fee disruptor Betashares Australia 200 ETF (A200), who offers access to the broad Australian sharemarket for 0.07% pa rocketing up the leaderboard with over $400 million in flows just over a year from initially launching.
Perennial favourite, Vanguard Australian Shares Fund (VAS) continued to take the number one spot, with almost $800 million in flows. Already offering low fees, Vanguard has recently lowered its fees from 0.14% to 0.10% pa due to pressure from Betashares super low cost option.
As cash rates continue to be slashed to record lows, fixed income ETFs are becoming a popular asset class for income seeking investors looking for alternatives to cash.
Two pure play fixed income ETFs land in the top 10 ETFs by flow this year, with Vanguard’s Australian Fixed Interest ETF (VAF) in 5th place for total flows, and Betashares Australian Investment Grade Corporate Bond ETF (CRED) landing in 10th place, only a year after launching.
Additionally, a hybrid between cash and fixed income, the Betashares Australian Bank Senior Floating Rate ETF (QPON) came in at 6th place. Hybrid between Shares and Fixed Income, Betashares Active Australian Hybrids Fund (HBRD) came in at 7th place.
Fixed income ETFs made up 23% of all net flows to ETFs over the last year, up from 13% the year before. The options for Fixed Income investors have grown considerably over the last couple of years, and based on their recent popularity, we’re sure we’ll start seeing more.
The below chart shows the flows to each of the main asset classes compared to the previous two financial years.
Whilst Index ETFs still dominate inflows, at 64% of total flows, the growth in flows over the last year has overwhelmingly been to Smart Beta and Active ETFs. Index ETFs took $5.4 billion in flows, up only slightly from $5.3 billion last year.
Smart Beta however took $1.8 Billion in flows, up 42% from last year’s $1.3 billion, and the small but growing Active ETF market grew to $1.1 billion, up from $800 million last year.
The 4th most popular ETF over the last year employs a classic Smart Beta strategy, the Vaneck Vectors Australian Equal Weight ETF (MVW), taking $300m in flows and overcoming one of the disadvantages of index investing by investing in an equal weight across the market.
With the majority of growth in new listings coming in the Smart Beta and Active ETF space, we think we’ll continue to see most of the growth in ETFs coming from these types of ETFs.
With the champagne corks now popped for the $50 billion milestone, the next major milestone for the ETF market will be $100 billion. With the market growing at 30% year on year now for a number of years, the trend shows this milestone being hit some time in early 2022. However, plenty can happen in the next 3 years, so we can only speculate when this will be hit.
Below we list all of the inflows to all the ETFs on the ASX in the last Financial Year.
| Ticker | Name | Total Inflows (millions) | Fund Size (millions) |
|---|---|---|---|
| VAS | Vanguard Australian Shares Index | 797.1 | 3884.73 |
| VGS | Vanguard MSCI Index International Series | 453.05 | 1670.14 |
| A200 | Betashares Australia 200 ETF | 407.78 | 516.69 |
| MVW | VanEck Vectors Australian Equal Weight ETF | 299.78 | 882.41 |
| VAF | Vanguard Australian Fixed Interest Index | 261.14 | 1019.91 |
| QPON | BetaShares Australian Bank Senior Floating Rate Bond ETF | 258.13 | 497.81 |
| HBRD | BetaShares Active Australian Hybrids Fund (managed fund) | 257.5 | 364.02 |
| BILL | iShares Core Cash ETF | 252.43 | 449.71 |
| VAP | Vanguard Australian Property Securities Index ETF | 233.55 | 1436 |
| CRED | BetaShares Australian Investment Grade Corporate Bond ETF | 228.3 | 244.39 |
| IAF | iShares UBS Composite Bond ETF | 214.07 | 846.03 |
| AAA | Betashares Australian High Interest Cash ETF | 198.67 | 1509.03 |
| VGAD | Vanguard MSCI Index International Series (Hedged) | 175.93 | 619.06 |
| MICH | Magellan Infrastructure Fund (Currency Hedged) (Managed Fund) | 154.5 | 372.96 |
| MGE | Magellan Global Equities Fund | 153.78 | 1423.11 |
| QUAL | VanEck Vectors MSCI World Ex-Australia ETF | 152.13 | 600.47 |
| VEU | Vanguard All-World EX US Shares Index | 148.47 | 1438.78 |
| VGB | Vanguard Australian Government Bond Index ETF | 143.82 | 295.9 |
| WDMF | iShares Edge MSCI World Multifactor ETF | 136.61 | 212.64 |
| PIXX | Platinum International Fund (Quoted Managed Hedge Fund) | 135.66 | 320.13 |
| VACF | Vanguard Australian Corporate Fixed Interest Index ETF | 125.72 | 262.11 |
| NDQ | Betashares NASDAQ 100 | 121.17 | 520.61 |
| PLUS | VanEck Vectors Australian Corporate Bond Plus ETF | 119.02 | 330.01 |
| VIF | Vanguard International Fixed Interest (Hedged) ETF | 115.63 | 322.39 |
| VTS | Vanguard US Total Market Shares Index | 112.68 | 1620.38 |
| FAIR | BetaShares Australian Sustainability Leaders ETF | 109.87 | 308.76 |
| VDBA | Vanguard Diversified Balanced Index ETF | 105.12 | 135.4 |
| IGB | IShares UBS Treasury ETF | 104.63 | 143.89 |
| VDHG | Vanguard Diversified High Growth Index ETF | 101.24 | 176.45 |
| VGE | Vanguard FTSE Emerging Markets Shares | 95.49 | 317.21 |
| VDGR | Vanguard Diversified Growth Index ETF | 94.78 | 135.22 |
| VHY | Vanguard Australian Shares High Yield ETF | 94.38 | 1234.8 |
| ETHI | BetaShares Global Sustainability Leaders ETF | 90.56 | 340.69 |
| MVA | VanEck Vectors Australian Property ETF | 84.26 | 237.11 |
| EX20 | BetaShares Australian Ex-20 Portfolio Diversifier ETF | 82.66 | 124.79 |
| BBOZ | BetaShares Australian Equities Strong Bear (Hedge Fund) | 73.66 | 138.07 |
| BNDS | BetaShares Legg Mason Australian Bond Fund (managed fund) | 73.62 | 76.57 |
| PAXX | Platinum Asia Fund (Quoted Managed Hedge Fund) | 72.51 | 159.55 |
| IHVV | iShares S&P 500 AUD Hedged | 69.9 | 186.84 |
| FLOT | Vaneck Vectors Australian Floating Rate ETF | 69.27 | 155.14 |
| VAE | Vanguard FTSE Asia ex Japan Shares Index ETF | 68.4 | 170.22 |
| IAA | iShares Asia 50 ETF | 66.4 | 514.38 |
| IFRA | VanEck Vectors FTSE Global Infrastructure (Hedged) ETF | 65.44 | 154.55 |
| WCMQ | WCM Quality Global Growth Fund (Managed Fund) | 64.07 | 72.13 |
| IHCB | iShares Global Corporate Bond ETF (Hedged) | 61.07 | 148.52 |
| VSO | Vanguard MSCI Australian Small Companies Index | 59.33 | 254.7 |
| RARI | Russell Australian Responsible Investment ETF | 58.66 | 133.43 |
| IOZ | iShares S&P/ASX 200 ETF | 58.06 | 1291.59 |
| IXI | iShares Global Consumer Staples ETF | 57.1 | 183.83 |
| ISEC | iShares Enhanced Cash ETF | 56.76 | 93 |
| IHWL | iShares Core MSCI World All Cap (AUD Hedged) ETF | 56.39 | 67.78 |
| ASIA | BetaShares Asia Technology Tigers ETF | 55.05 | 57.92 |
| VBND | Vanguard Global Aggregate Bond Index (Hedged) ETF | 54.49 | 74.02 |
| HACK | BetaShares Global Cybersecurity ETF | 52.78 | 152.22 |
| WDIV | SPDR S&P Global Dividend Fund | 51.05 | 227.8 |
| WVOL | iShares Edge MSCI World Minimum Volatility ETF | 51.04 | 67.55 |
| IWLD | iShares Core MSCI World All Cap ETF | 49.28 | 83.18 |
| QFN | Beta Shares S&P/ASX 200 Financials Sector ETF | 48.66 | 73.22 |
| RCB | Russell Australian Select Corporate Bond ETF | 45.96 | 217.59 |
| ZYAU | ETFS S&P/ASX 300 High Yield Plus ETF | 45.34 | 110.44 |
| MOAT | Vaneck Vectors Morningstar Wide Moat ETF | 43.37 | 113.37 |
| VDCO | Vanguard Diversified Conservative Index ETF | 42.61 | 54.56 |
| BBUS | Betashares US Eq Strong Bear Hedged Fund | 41.27 | 83.67 |
| VEQ | Vanguard FTSE Europe Shares ETF | 37.76 | 238.52 |
| CNEW | VanEck Vectors China New Economy ETF | 37.36 | 39.88 |
| GDX | VanEck Vectors Gold Miners ETF | 35.37 | 127.93 |
| DJRE | SPDR Dow Jones Global Real Estate Fund | 35.29 | 297.42 |
| IKO | iShares MSCI South Korea Capped ETF | 30.14 | 67.99 |
| PMGOLD | Perth Mint Gold | 29.9 | 192.81 |
| WRLD | Betashares Managed Risk Global Share Fund | 29.61 | 61.51 |
| VESG | Vanguard Ethically Conscious International Shares Index Fund | 28.47 | 29.78 |
| IJR | iShares Core S&P SmallCap 600 | 27.5 | 186.91 |
| TECH | ETFS Morningstar Global Technology ETF | 27.23 | 87.53 |
| GRNV | VanEck Vectors MSCI Australian Sustainable Equity ETF | 25.62 | 36.4 |
| MVOL | iShares Edge MSCI Australia Minimum Volatility ETF | 25.3 | 30.04 |
| ROBO | ETFS ROBO Global Robotics and Automation ETF | 23.86 | 130.43 |
| BOND | SPDR S&P/ASX Australian Bond Fund | 23.6 | 50.28 |
| RBTZ | BetaShares Global Robotics and Artificial Intelligence ETF | 23.54 | 25.01 |
| AUST | Betashares Managed Risk Australian Share Fund | 22.67 | 47.13 |
| MHG | Magellan Global Equities Fund Currency Hedged (Managed Fund) | 22.42 | 101.22 |
| VCF | Vanguard International Credit Securities Index (Hedged) ETF | 22.3 | 125.74 |
| AGX1 | Antipodes Global Shares (Quoted Managed Fund) | 21.65 | 23.34 |
| QAU | BetaShares Gold Bullion ETF - Currency Hedged | 20.59 | 86.86 |
| IOO | IShares Global 100 ETF | 20.28 | 1617.55 |
| RINC | BetaShares Legg Mason Real Income Fund (managed fund) | 19.66 | 33.4 |
| MVE | VanEck Vectors S&P/ASX MidCap ETF | 19.46 | 108.71 |
| FEMX | Fidelity Global Emerging Markets Fund (Managed Fund) | 19.15 | 22.43 |
| ESGI | VanEck Vectors MSCI International Sustainable Equity ETF | 18.87 | 24.71 |
| SFY | SPDR S&P/ASX 50 Fund | 17.54 | 576.83 |
| INES | InvestSMART Ethical Securities Fund (Managed Fund) | 17.05 | 17.05 |
| CETF | VanEck Vectors ChinaAMC A-Share ETF | 16.32 | 27.65 |
| VBLD | Vanguard Global Infrastructure Index ETF | 16.22 | 16.91 |
| XARO | ActiveX Ardea Real Outcome Bond Fund (Managed Fund) | 15.54 | 15.78 |
| MOGL | Montgomery Global Equities Fund (Managed Fund) | 15.38 | 98.93 |
| GOLD | ETFS Physical Gold | 15.16 | 719.46 |
| VGMF | Vanguard Global Multi-Factor Active ETF (Managed Fund) | 14.19 | 14.14 |
| ZYUS | ETFS S&P 500 High Yield Low Volatility ETF | 14.06 | 66.82 |
| OZF | SPDR S&P/ASX 200 Financials ex A-REITS Fund | 13.28 | 77.68 |
| ACDC | ETFS Battery Tech & Lithium ETF | 12.8 | 12.16 |
| IJP | iShares MSCI Japan ETF | 12.69 | 272.09 |
| QLTY | BetaShares Global Quality Leaders ETF | 11.78 | 12.75 |
| IXJ | iShares Global Healthcare ETF | 10.86 | 584.23 |
| MVB | VanEck Vectors Australian Banks ETF | 10.8 | 47.55 |
| VISM | Vanguard MSCI International Small Companies Index ETF | 10.2 | 10.47 |
| IJH | iShares Core S&P MidCap 400 | 9.05 | 157.95 |
| VVLU | Vanguard Global Value Equity Active ETF (Managed Fund) | 9.01 | 14.54 |
| SLF | SPDR S&P/ASX 200 Listed Property Fund | 8.73 | 627.45 |
| IHHY | iShares Global High Yield Bond (Hedged) ETF | 8.59 | 35.09 |
| SMLL | BetaShares Australian Small Companies Select Fund (managed fund) | 8.37 | 30.77 |
| INCM | BetaShares Global Income Leaders ETF | 8.16 | 8.39 |
| GROW | Schroder Real Return Fund (Managed Fund) | 8.1 | 55.86 |
| CORE | ETFS Global Core Infrastructure ETF | 8.04 | 11.86 |
| IHOO | iShares Global 100 AUD Hedged | 7.85 | 45.71 |
| VMIN | Vanguard Global Minimum Volatility Active ETF (Managed Fund) | 7.46 | 10.39 |
| EINC | BetaShares Legg Mason Equity Income Fund (managed fund) | 7.4 | 21.06 |
| KSM | K2 Australian Small Cap Fund | 7.36 | 17.56 |
| EMMG | BetaShares Legg Mason Emerging Markets Fund (managed fund) | 6.51 | 6.51 |
| IZZ | iShares China Large-Cap ETF | 6.4 | 107.9 |
| SPY | SPDR S&P 500 ETF Trust | 5.95 | 31.23 |
| QHAL | VanEck Vectors MSCI World ex Australia Quality (Hedged) ETF | 5.79 | 6.45 |
| INIF | InvestSMART Australian Equity Income Fund (Managed Fund) | 5.52 | 38.32 |
| GGUS | Betashares Geared US Equity Fund - Currency Hedged (Hedge Fund) | 5.51 | 26.57 |
| WXHG | SPDR S&P World Ex Australia (Hedged) Fund | 5.49 | 88.3 |
| OZR | SPDR S&P/ASX 200 Resources Fund | 5.44 | 85.83 |
| GOVT | SPDR S&P/ASX Australian Government Bond Fund | 5.38 | 19.64 |
| CURE | ETFS S&P Biotech ETF | 5.02 | 5.2 |
| RGB | Russell Australian Government Bond ETF | 4.9 | 70.72 |
| QMIX | SPDR MSCI World Quality Mix Fund | 4.89 | 14.58 |
| IVE | iShares MSCI EAFE ETF | 4.8 | 351.18 |
| DRUG | BetaShares Global Healthcare ETF - Currency Hedged | 4.71 | 31.1 |
| AUMF | iShares Edge MSCI Australia Multifactor ETF | 4.57 | 14.76 |
| FUEL | BetaShares Global Energy Companies ETF - Currency Hedged | 4.5 | 28.8 |
| VEFI | Vanguard Ethically Conscious Global Aggregate Bond Index Fund | 4.15 | 4.26 |
| UBW | UBS IQ MSCI World ex Australia Ethical ETF | 3.94 | 36.1 |
| ETPMAG | ETFS Physical Silver | 3.79 | 62.16 |
| EIGA | eInvest Income Generator Fund (Managed Fund) | 3.74 | 20.21 |
| UBE | UBS IQ MSCI Europe Ethical ETF | 3.59 | 15.39 |
| FOOD | BetaShares Global Agriculture Companies ETF - Currency Hedged | 3.55 | 20.38 |
| RENT | AMP Capital Global Property Securities Fund (unhedged) (managed fund) | 3.4 | 20.52 |
| IHEB | iShares J.P. Morgan USD Emerging Markets Bond (AUD Hedged) ETF | 3.16 | 17.11 |
| UBP | UBS IQ MSCI Asia APREX 50 Ethical ETF | 3.05 | 12.15 |
| ISO | iShares S&P/ASX Small Ordinaries ETF | 3.03 | 106.66 |
| ILB | iShares UBS Government Inflation ETF | 2.86 | 129.42 |
| REIT | VanEck Vectors FTSE International Property (Hedged) ETF | 2.37 | 2.38 |
| MNRS | Betashares Global Gold Miners ETF - Currency Hedged | 2.21 | 8.48 |
| VLC | Vanguard MSCI Australian Large Companies Index | 1.71 | 92.46 |
| WXOZ | SPDR S&P World Ex Australia Fund | 1.7 | 186.44 |
| SSO | SPDR S&P/ASX Small Ordinaries Fund | 1.6 | 22.82 |
| NDIA | ETFS Reliance India Nifty 50 ETF | 1.51 | 1.51 |
| ETPMPM | ETFS Physical Precious Metal Basket | 1.22 | 7.78 |
| UBJ | UBS IQ MSCI Japan Ethical ETF | 1.15 | 5.68 |
| RSM | Russell Australian Semi-Government Bond ETFÂ | 0.95 | 64.68 |
| IMPQ | eInvest Future Impact Small Caps Fund (Managed Fund) | 0.7 | 0.36 |
| ETPMPT | ETFS Physical Platinum | 0.52 | 1.68 |
| ETPMPD | ETFS Physical Palladium | 0.36 | 2.31 |
| QAG | BetaShares Agricultural ETF - Currency Hedged (Synthetic) | 0.23 | 3.18 |
| UBU | UBS IQ MSCI USA Ethical ETF | 0.01 | 7.59 |
| GLIN | AMP Capital Global Infrastructure Securities Fund (unhedged) (managed fund) | -0.03 | 27.91 |
| MONY | UBS IQ Cash ETF | -0.3 | 0.7 |
| QUS | Betashares FTSE RAFI US 1000 ETF | -0.68 | 42.94 |
| QCB | BetaShares Commodities Basket ETF - Currency Hedged (Synthetic) | -0.79 | 8.56 |
| ETF | UBS IQ Morningstar Australia Quality ETF | -0.92 | 7.87 |
| BEAR | BetaShares Australian Equities Bear (Hedge Fund) | -1.31 | 46.41 |
| AUDS | BetaShares Strong Australian Dollar Fund (hedge fund) | -1.35 | 2.41 |
| DIV | UBS IQ Morningstar Australia Dividend Yield ETF | -1.73 | 9.73 |
| OOO | BetaShares Crude Oil Index ETF- Currency Hedged (Synthetic) | -1.85 | 26.68 |
| WEMG | SPDR S&P Emerging Markets Fund | -1.89 | 19.13 |
| EEU | BetaShares Euro ETF | -2.31 | 6.1 |
| YANK | BetaShares Strong U.S. Dollar Fund (hedge fund) | -2.32 | 10.43 |
| DMKT | AMP Capital Dynamic Markets Fund (Hedge Fund) | -3.36 | 23.61 |
| POU | BetaShares British Pound ETF | -3.47 | 17.7 |
| SWTZ | Switzer Dividend Growth Fund (Managed Fund) | -3.81 | 73.15 |
| RDV | Russell High Dividend Australian Shares ETF | -4.87 | 287.07 |
| ESTX | ETFS EURO STOXX 50® ETF | -5.78 | 62.22 |
| UMAX | Betashares S&P500 Yield Maximiser Fund (Managed Fund) | -6.6 | 90.36 |
| EMKT | VanEck Vectors MSCI Multifactor Emerging Markets Equity ETF | -7.46 | 19.04 |
| GEAR | BetaShares Geared Australian Equity Fund (Hedge Fund) | -8.93 | 81.24 |
| IVV | iShares Core S&P 500 | -9.43 | 3099 |
| MVS | VanEck Vectors Small Cap Dividend Payers ETF | -9.86 | 59.97 |
| KII | K2 Global Equities Fund (Hedge Fund) | -10.83 | 4.94 |
| IEM | iShares MSCI Emerging Markets ETF | -11.1 | 634.95 |
| ZUSD | ETFS Physical US Dollar ETF | -12.24 | 8.28 |
| SYI | SPDR MSCI Australia Select High Dividend Yield Fund | -12.87 | 155.47 |
| HEUR | BetaShares WisdomTree Europe ETF - Currency Hedged | -13.53 | 35.55 |
| BNKS | BetaShares Global Banks ETF - Currency Hedged | -13.55 | 52.42 |
| HJPN | BetaShares WisdomTree Japan ETF - Currency Hedged | -15.83 | 39.33 |
| IHD | iShares S&P/ASX Dividend Opportunities Fund ETF | -19.15 | 241.98 |
| QOZ | BetaShares FTSE RAFI Australia 200 ETF | -21.97 | 271.96 |
| UBA | UBS IQ MSCI Australia Ethical ETF | -25.39 | 189.09 |
| ILC | iShares S&P/ASX 20 ETF | -25.39 | 318.19 |
| HVST | BetaShares Australian Dividend Harvester Fund (Managed Fund) | -35.68 | 164.57 |
| MVR | VanEck Vectors Australian Resources ETF | -40.34 | 61.01 |
| ITW | iShares MSCI Taiwan ETF | -40.95 | 4.68 |
| YMAX | BetaShares Australian Top 20 Equity Yield Maximiser Fund | -52.26 | 314.97 |
| STW | SPDR S&P/ASX 200 Fund | -99.32 | 3915.16 |
| IEU | IShares Europe ETF | -99.68 | 700.2 |
| QRE | Beta Shares S&P/ASX 200 Resources Sector ETF | -115.07 | 33.82 |
| USD | BetaShares U.S. Dollar ETF | -176.19 | 312.06 |
