ETF industry grows $1b in February



The Australian exchange traded fund (ETF) industry increased by $1 billion in February, the largest in a single month, according to a new BetaShares review.
This record also contributed to the record high of $16.8 billion in funds under management (FUM). The ETF report found the key contributors to the growth were overall appreciation in value of Australian and global equities.
"In terms of product sectors, exposures to global developed market equities received the strongest inflows throughout the month, with a mix of both US and global equities products receiving strong flows," managing director of BetaShares, Alex Vynokur, said.
"With a growing array of products for investors to make use of in different market conditions we believe the industry is on track to meet or exceed $21 to $23 billion FUM by the end of the year."
Four new products were introduced to the market by UBS in February and were marketed as Australia's first ‘ethical' ETFs.
Recommended for you
The merger with L1 Capital will “inject new life” into Platinum, Morningstar believes, but is unlikely to boost Platinum’s declining funds under management.
More than half of the top 20 most popular shares bought by advised investors during the first half of 2025 were ETFs, according to AUSIEX data.
At least two-thirds of ETF flows are understood to be driven by intermediaries, according to Global X, as net flows into Australian ETFs spike 97 per cent in the first half of 2025.
Inflows for the first half of 2025 for GQG Partners stand at US$8 billion, but the firm has flagged fund underperformance could be a headwind for future flows.