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ETFs hit $50 billion in Australia. Here’s where the flows went over the last year

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.

By ETF Watch - Jul 09, 2019

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.

Lower cost = more popular

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.

Fixed income grows in popularity

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.

Growth in flows to Smart Beta and Active ETFs

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.

How long until $100 billion?

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.

TickerNameTotal Inflows (millions)Fund Size (millions)
VASVanguard Australian Shares Index797.13884.73
VGSVanguard MSCI Index International Series453.051670.14
A200Betashares Australia 200 ETF407.78516.69
MVWVanEck Vectors Australian Equal Weight ETF299.78882.41
VAFVanguard Australian Fixed Interest Index261.141019.91
QPONBetaShares Australian Bank Senior Floating Rate Bond ETF258.13497.81
HBRDBetaShares Active Australian Hybrids Fund (managed fund)257.5364.02
BILLiShares Core Cash ETF252.43449.71
VAPVanguard Australian Property Securities Index ETF233.551436
CREDBetaShares Australian Investment Grade Corporate Bond ETF228.3244.39
IAFiShares UBS Composite Bond ETF214.07846.03
AAABetashares Australian High Interest Cash ETF198.671509.03
VGADVanguard MSCI Index International Series (Hedged)175.93619.06
MICHMagellan Infrastructure Fund (Currency Hedged) (Managed Fund)154.5372.96
MGEMagellan Global Equities Fund153.781423.11
QUALVanEck Vectors MSCI World Ex-Australia ETF152.13600.47
VEUVanguard All-World EX US Shares Index148.471438.78
VGBVanguard Australian Government Bond Index ETF143.82295.9
WDMFiShares Edge MSCI World Multifactor ETF136.61212.64
PIXXPlatinum International Fund (Quoted Managed Hedge Fund)135.66320.13
VACFVanguard Australian Corporate Fixed Interest Index ETF125.72262.11
NDQBetashares NASDAQ 100121.17520.61
PLUSVanEck Vectors Australian Corporate Bond Plus ETF119.02330.01
VIFVanguard International Fixed Interest (Hedged) ETF115.63322.39
VTSVanguard US Total Market Shares Index112.681620.38
FAIRBetaShares Australian Sustainability Leaders ETF109.87308.76
VDBAVanguard Diversified Balanced Index ETF105.12135.4
IGBIShares UBS Treasury ETF104.63143.89
VDHGVanguard Diversified High Growth Index ETF101.24176.45
VGEVanguard FTSE Emerging Markets Shares95.49317.21
VDGRVanguard Diversified Growth Index ETF94.78135.22
VHYVanguard Australian Shares High Yield ETF94.381234.8
ETHIBetaShares Global Sustainability Leaders ETF90.56340.69
MVAVanEck Vectors Australian Property ETF84.26237.11
EX20BetaShares Australian Ex-20 Portfolio Diversifier ETF82.66124.79
BBOZBetaShares Australian Equities Strong Bear (Hedge Fund)73.66138.07
BNDSBetaShares Legg Mason Australian Bond Fund (managed fund)73.6276.57
PAXXPlatinum Asia Fund (Quoted Managed Hedge Fund)72.51159.55
IHVViShares S&P 500 AUD Hedged69.9186.84
FLOTVaneck Vectors Australian Floating Rate ETF69.27155.14
VAEVanguard FTSE Asia ex Japan Shares Index ETF68.4170.22
IAAiShares Asia 50 ETF66.4514.38
IFRAVanEck Vectors FTSE Global Infrastructure (Hedged) ETF65.44154.55
WCMQWCM Quality Global Growth Fund (Managed Fund)64.0772.13
IHCBiShares Global Corporate Bond ETF (Hedged)61.07148.52
VSOVanguard MSCI Australian Small Companies Index59.33254.7
RARIRussell Australian Responsible Investment ETF58.66133.43
IOZiShares S&P/ASX 200 ETF58.061291.59
IXIiShares Global Consumer Staples ETF57.1183.83
ISECiShares Enhanced Cash ETF56.7693
IHWLiShares Core MSCI World All Cap (AUD Hedged) ETF56.3967.78
ASIABetaShares Asia Technology Tigers ETF55.0557.92
VBNDVanguard Global Aggregate Bond Index (Hedged) ETF54.4974.02
HACKBetaShares Global Cybersecurity ETF52.78152.22
WDIVSPDR S&P Global Dividend Fund51.05227.8
WVOLiShares Edge MSCI World Minimum Volatility ETF51.0467.55
IWLDiShares Core MSCI World All Cap ETF49.2883.18
QFNBeta Shares S&P/ASX 200 Financials Sector ETF48.6673.22
RCBRussell Australian Select Corporate Bond ETF45.96217.59
ZYAUETFS S&P/ASX 300 High Yield Plus ETF45.34110.44
MOATVaneck Vectors Morningstar Wide Moat ETF43.37113.37
VDCOVanguard Diversified Conservative Index ETF42.6154.56
BBUSBetashares US Eq Strong Bear Hedged Fund41.2783.67
VEQVanguard FTSE Europe Shares ETF37.76238.52
CNEWVanEck Vectors China New Economy ETF37.3639.88
GDXVanEck Vectors Gold Miners ETF35.37127.93
DJRESPDR Dow Jones Global Real Estate Fund35.29297.42
IKOiShares MSCI South Korea Capped ETF30.1467.99
PMGOLDPerth Mint Gold29.9192.81
WRLDBetashares Managed Risk Global Share Fund29.6161.51
VESGVanguard Ethically Conscious International Shares Index Fund28.4729.78
IJRiShares Core S&P SmallCap 60027.5186.91
TECHETFS Morningstar Global Technology ETF27.2387.53
GRNVVanEck Vectors MSCI Australian Sustainable Equity ETF25.6236.4
MVOLiShares Edge MSCI Australia Minimum Volatility ETF25.330.04
ROBOETFS ROBO Global Robotics and Automation ETF23.86130.43
BONDSPDR S&P/ASX Australian Bond Fund23.650.28
RBTZBetaShares Global Robotics and Artificial Intelligence ETF23.5425.01
AUSTBetashares Managed Risk Australian Share Fund22.6747.13
MHGMagellan Global Equities Fund Currency Hedged (Managed Fund)22.42101.22
VCFVanguard International Credit Securities Index (Hedged) ETF22.3125.74
AGX1Antipodes Global Shares (Quoted Managed Fund)21.6523.34
QAUBetaShares Gold Bullion ETF - Currency Hedged20.5986.86
IOOIShares Global 100 ETF20.281617.55
RINCBetaShares Legg Mason Real Income Fund (managed fund)19.6633.4
MVEVanEck Vectors S&P/ASX MidCap ETF19.46108.71
FEMXFidelity Global Emerging Markets Fund (Managed Fund)19.1522.43
ESGIVanEck Vectors MSCI International Sustainable Equity ETF18.8724.71
SFYSPDR S&P/ASX 50 Fund17.54576.83
INESInvestSMART Ethical Securities Fund (Managed Fund)17.0517.05
CETFVanEck Vectors ChinaAMC A-Share ETF16.3227.65
VBLDVanguard Global Infrastructure Index ETF16.2216.91
XAROActiveX Ardea Real Outcome Bond Fund (Managed Fund)15.5415.78
MOGLMontgomery Global Equities Fund (Managed Fund)15.3898.93
GOLDETFS Physical Gold15.16719.46
VGMFVanguard Global Multi-Factor Active ETF (Managed Fund)14.1914.14
ZYUSETFS S&P 500 High Yield Low Volatility ETF14.0666.82
OZFSPDR S&P/ASX 200 Financials ex A-REITS Fund13.2877.68
ACDCETFS Battery Tech & Lithium ETF12.812.16
IJPiShares MSCI Japan ETF12.69272.09
QLTYBetaShares Global Quality Leaders ETF11.7812.75
IXJiShares Global Healthcare ETF10.86584.23
MVBVanEck Vectors Australian Banks ETF10.847.55
VISMVanguard MSCI International Small Companies Index ETF10.210.47
IJHiShares Core S&P MidCap 4009.05157.95
VVLUVanguard Global Value Equity Active ETF (Managed Fund)9.0114.54
SLFSPDR S&P/ASX 200 Listed Property Fund8.73627.45
IHHYiShares Global High Yield Bond (Hedged) ETF8.5935.09
SMLLBetaShares Australian Small Companies Select Fund (managed fund)8.3730.77
INCMBetaShares Global Income Leaders ETF8.168.39
GROWSchroder Real Return Fund (Managed Fund)8.155.86
COREETFS Global Core Infrastructure ETF8.0411.86
IHOOiShares Global 100 AUD Hedged7.8545.71
VMINVanguard Global Minimum Volatility Active ETF (Managed Fund)7.4610.39
EINCBetaShares Legg Mason Equity Income Fund (managed fund)7.421.06
KSMK2 Australian Small Cap Fund7.3617.56
EMMGBetaShares Legg Mason Emerging Markets Fund (managed fund)6.516.51
IZZiShares China Large-Cap ETF6.4107.9
SPYSPDR S&P 500 ETF Trust5.9531.23
QHALVanEck Vectors MSCI World ex Australia Quality (Hedged) ETF5.796.45
INIFInvestSMART Australian Equity Income Fund (Managed Fund)5.5238.32
GGUSBetashares Geared US Equity Fund - Currency Hedged (Hedge Fund)5.5126.57
WXHGSPDR S&P World Ex Australia (Hedged) Fund5.4988.3
OZRSPDR S&P/ASX 200 Resources Fund5.4485.83
GOVTSPDR S&P/ASX Australian Government Bond Fund5.3819.64
CUREETFS S&P Biotech ETF5.025.2
RGBRussell Australian Government Bond ETF4.970.72
QMIXSPDR MSCI World Quality Mix Fund4.8914.58
IVEiShares MSCI EAFE ETF4.8351.18
DRUGBetaShares Global Healthcare ETF - Currency Hedged4.7131.1
AUMFiShares Edge MSCI Australia Multifactor ETF4.5714.76
FUELBetaShares Global Energy Companies ETF - Currency Hedged4.528.8
VEFIVanguard Ethically Conscious Global Aggregate Bond Index Fund4.154.26
UBWUBS IQ MSCI World ex Australia Ethical ETF3.9436.1
ETPMAGETFS Physical Silver3.7962.16
EIGAeInvest Income Generator Fund (Managed Fund)3.7420.21
UBEUBS IQ MSCI Europe Ethical ETF3.5915.39
FOODBetaShares Global Agriculture Companies ETF - Currency Hedged3.5520.38
RENTAMP Capital Global Property Securities Fund (unhedged) (managed fund)3.420.52
IHEBiShares J.P. Morgan USD Emerging Markets Bond (AUD Hedged) ETF3.1617.11
UBPUBS IQ MSCI Asia APREX 50 Ethical ETF3.0512.15
ISOiShares S&P/ASX Small Ordinaries ETF3.03106.66
ILBiShares UBS Government Inflation ETF2.86129.42
REITVanEck Vectors FTSE International Property (Hedged) ETF2.372.38
MNRSBetashares Global Gold Miners ETF - Currency Hedged2.218.48
VLCVanguard MSCI Australian Large Companies Index1.7192.46
WXOZSPDR S&P World Ex Australia Fund1.7186.44
SSOSPDR S&P/ASX Small Ordinaries Fund1.622.82
NDIAETFS Reliance India Nifty 50 ETF1.511.51
ETPMPMETFS Physical Precious Metal Basket1.227.78
UBJUBS IQ MSCI Japan Ethical ETF1.155.68
RSMRussell Australian Semi-Government Bond ETF 0.9564.68
IMPQeInvest Future Impact Small Caps Fund (Managed Fund)0.70.36
ETPMPTETFS Physical Platinum0.521.68
ETPMPDETFS Physical Palladium0.362.31
QAGBetaShares Agricultural ETF - Currency Hedged (Synthetic)0.233.18
UBUUBS IQ MSCI USA Ethical ETF0.017.59
GLINAMP Capital Global Infrastructure Securities Fund (unhedged) (managed fund)-0.0327.91
MONYUBS IQ Cash ETF-0.30.7
QUSBetashares FTSE RAFI US 1000 ETF-0.6842.94
QCBBetaShares Commodities Basket ETF - Currency Hedged (Synthetic)-0.798.56
ETFUBS IQ Morningstar Australia Quality ETF-0.927.87
BEARBetaShares Australian Equities Bear (Hedge Fund)-1.3146.41
AUDSBetaShares Strong Australian Dollar Fund (hedge fund)-1.352.41
DIVUBS IQ Morningstar Australia Dividend Yield ETF-1.739.73
OOOBetaShares Crude Oil Index ETF- Currency Hedged (Synthetic)-1.8526.68
WEMGSPDR S&P Emerging Markets Fund-1.8919.13
EEUBetaShares Euro ETF-2.316.1
YANKBetaShares Strong U.S. Dollar Fund (hedge fund)-2.3210.43
DMKTAMP Capital Dynamic Markets Fund (Hedge Fund)-3.3623.61
POUBetaShares British Pound ETF-3.4717.7
SWTZSwitzer Dividend Growth Fund (Managed Fund)-3.8173.15
RDVRussell High Dividend Australian Shares ETF-4.87287.07
UMAXBetashares S&P500 Yield Maximiser Fund (Managed Fund)-6.690.36
EMKTVanEck Vectors MSCI Multifactor Emerging Markets Equity ETF-7.4619.04
GEARBetaShares Geared Australian Equity Fund (Hedge Fund)-8.9381.24
IVViShares Core S&P 500-9.433099
MVSVanEck Vectors Small Cap Dividend Payers ETF-9.8659.97
KIIK2 Global Equities Fund (Hedge Fund)-10.834.94
IEMiShares MSCI Emerging Markets ETF-11.1634.95
ZUSDETFS Physical US Dollar ETF-12.248.28
SYISPDR MSCI Australia Select High Dividend Yield Fund-12.87155.47
HEURBetaShares WisdomTree Europe ETF - Currency Hedged-13.5335.55
BNKSBetaShares Global Banks ETF - Currency Hedged-13.5552.42
HJPNBetaShares WisdomTree Japan ETF - Currency Hedged-15.8339.33
IHDiShares S&P/ASX Dividend Opportunities Fund ETF-19.15241.98
QOZBetaShares FTSE RAFI Australia 200 ETF-21.97271.96
UBAUBS IQ MSCI Australia Ethical ETF-25.39189.09
ILCiShares S&P/ASX 20 ETF-25.39318.19
HVSTBetaShares Australian Dividend Harvester Fund (Managed Fund)-35.68164.57
MVRVanEck Vectors Australian Resources ETF-40.3461.01
ITWiShares MSCI Taiwan ETF-40.954.68
YMAXBetaShares Australian Top 20 Equity Yield Maximiser Fund-52.26314.97
STWSPDR S&P/ASX 200 Fund-99.323915.16
IEUIShares Europe ETF-99.68700.2
QREBeta Shares S&P/ASX 200 Resources Sector ETF-115.0733.82
USDBetaShares U.S. Dollar ETF-176.19312.06

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