Adviser demand drives ETF launches

There were 36 ETFs listed in the first half of the 2025, including three new issuers offering a product for the first time, according to Betashares.

With three new issuers joining the market, this brings the total number of players in Australia to 59.

There were 10 ETFs that closed.

Last year, there were 66 ETFs launched during the full 12-month period, so 2025’s six-month numbers put the industry on track to reach or surpass this again if the trend of launches continues.

ETFs that launched during the period include BlackRock and First Sentier launching their first active ETFs, PIMCO launching a range of fixed income products, and Schroders expanding its active ETF range. There is also a growing number of ETFs launched investing in niche markets, such as alternatives, gold and defence stocks. 

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"In terms of launches, fixed income was very topical over the half with 12 new products. International equities were also topical with 16 launches so between the two asset classes they made up 28 out of 36 new products," Betashares told Money Management.

ETF launches during the half include:

• PIMCO Global Bond Active ETF, Diversified Fixed Interest Active ETF, Global Credit Active ETF, and Australian Bond Active ETF 
• Betashares 2028 Fixed Term Corporate Bond Active ETF, 2029 Fixed Term Corporate Bond Active ETF and 
  2030 Fixed Term Corporate Bond Active ETF
• iShares US Factor Rotation Active ETF
• ETF Shares US Quality ETF, US Technology ETF, Magnificent 7+ ETF
• Global X Artificial Intelligence Infrastructure ETF
• First Sentier Geared Australian Share Fund Complex ETF 
• VanEck Australian RMBS ETF, India Growth Leaders ETF

Adviser interest in looking to diversify their asset allocation through ETFs is among reasons why fund managers have looked to launch new products, and it is estimated around two-thirds of flows come from intermediary products. In particular, launching an active ETF version of an existing managed fund is a way for fund managers to offer a product that is more accessible for the retail and wholesale market as they seek to broaden their distribution. 

Speaking to Money Management earlier this year, GCQ head of distribution Stephen Higgins, which launched the Global Equities Complex ETF in March, said: “Our decision to launch an ETF followed a steady increase in inbound inquiry from advisers and stockbrokers over the last 12 months urging us to go down this path.

“Many of these advisers use the CHESS platform exclusively and weren’t previously able to invest in the GCQ Flagship Fund. GCQ’s strong returns, coupled with a strategy that resonates with investors, underpinned the interest advisers expressed in accessing our global strategy through an ETF.”

Looking at flows into existing products, Vanguard dominated during the period with more than $7 billion in inflows, representing almost a third of all flows. This is followed by Betashares at $5.4 billion and iShares at $3.4 billion. 

Vanguard’s Australian Shares Index ETF and MSCI Index International Shares ETF are the first and second-largest ETFs in the market currently at $20.7 billion and $11.6 billion in market cap respectively, and both gained over $1 billion during the half-year.

Daniel Shrimski, managing director of Vanguard Investments Australia, said: “Our strong inflow numbers continue to reflect the fact that a growing number of Australians are preferring to invest in low-cost, index-tracking ETF products that give them exposure to a broad number of securities.

“I really don’t expect that trend to change over time, despite the proliferation of thematic ETF products on the ASX that focus on specific segments and active products that aim to outperform the broader market through the use of complex trading strategies.”