Major ETF providers see 100% inflow growth
There has been a shake-up of the top ETF providers as three firms report net inflow increase of more than 100 per cent during 2024.
According to the annual review by Betashares, it said the firm had “underestimated the scale” of inflows that it would see during the year. Total net flows were $30.8 billion, up from $15 billion received in 2023, to bring total ETF funds under management to $246 billion.
It said: “In our year-end report for 2023, we wrote: ‘In terms of 2024, we believe that the industry will continue to benefit from increased investor adoption and inflows combined with positive markets. As such, we forecast total industry FUM at the end 2024 to exceed $200 billion and could reach as high as $220 billion depending on market conditions.’
“While we were correct regarding positive inflows and market growth, we underestimated the scale of net flows by some margin while market conditions were very conducive for growth exposures which contributed strongly to the growth in market size.”
The ETF provider with the largest inflows was Vanguard which saw $9.4 billion in inflows during the year. This was a 113 per cent rise from inflows during 2023 when it saw $4.4 billion and caused the firm to shift from second place into first place.
Popular Vanguard ETFs included Vanguard Australian Shares Index ETF which gained $2.3 billion and is the largest Australian ETF at $17.8 billion, Vanguard MSCI Index International Shares ETF, and Vanguard Global Aggregate Bond Index (Hedged) ETF – all of which sat in the top 10 inflows for the year.
This was followed by Betashares which moved from first place last year when it saw $5.6 billion in inflows to second with $8.2 billion inflows this year. While this was a rise of 46 per cent, it was far smaller than growth of its rivals over the 12-month period.
The largest overall increase was seen by iShares which increased its inflows by 135 per cent from $2.8 billion to $6.6 billion and sat in third place. Inflows went into the iShares S&P 500 ETF which gained over $2 billion, and iShares Core S&P/ASX 200 ETF which gained $1 billion.
VanEck rose by 106 per cent from $2.9 billion to $6 billion, slightly below iShares in fourth place, after its VanEck MSCI World Ex-Australia Quality ETF gained $1.4 billion.
Finally, Global X entered the top five for the first time after reporting a 98 per cent rise in inflows and passing $1 billion as its flows rose from $604 million to $1.2 billion. However, none of its funds sat in the top 10 inflows during the year or the largest ETFs.
Talaria Asset Management, which held the fifth position last year, dropped into sixth place as inflows dropped dramatically from over $1 billion in 2023 to $533 million.
ETF inflows during 2024
Source: Betashares, January 2025
AUTHOR
Laura Dew
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