Aussie ETFs see flows double to $5.8bn in July
Australian ETFs saw flows of $5.8 billion in July, more than double the previous month, and adviser adoption is tipped to help total flows reach $50 billion by the end of the year.
The latest Betashares monthly review found ETFs gained $5.8 billion, which was more than double the previous month that saw flows of $2.6 billion, and beating the previous record high of $4.6 billion set in January 2025 by more than $1 billion.
July’s inflows bring total ETF funds under management to $289.2 billion, up from $246 billion at the end of 2024.
International equity ETFs, particularly those focused on the US, saw the greatest proportion of flows during the month at $2.8 billion followed by fixed income at $1.3 billion.
The top three funds to see inflows were all offered by Vanguard: Australian Shares Index ETF ($305 million), Global Aggregate Bond Index (Hedged) ETF ($290 million), and MSCI Index International Shares ETF ($279 million).
Overall Vanguard flows now stand at more than $9 billion since the start of the year, representing a third of the total industry funds under management, followed by Betashares at $6.9 billion and iShares at $3.8 billion.
Outflows were concentrated in Australian equity ETFs, with the iShares Core S&P/ASX 200 ETF losing $88 million, SPDR S&P/ASX 200 losing $52 million, SPDR S&P/ASX 50 losing $21 million, and Betashares Australian Financials Sector ETF losing $17 million.
Australian equity ETFs gained less than $1 billion during the month at $962 million.
Looking towards the end of the year, Global X forecast flows could see a “blockbuster year” for ETFs with inflows having the potential to reach $50 billion by the end of the year.
This is led by adviser adoption of ETFs in their portfolio construction driven by their flexibility and transparency benefits, the rise of digital platforms, and the shift to low-cost strategies.
“Historically, the back end of the year tends to see a surge in ETF buying momentum. If that seasonal pattern holds true, the ETF market could be gearing up for a blockbuster finish, with inflows possibly climbing towards the $40–50 billion range, leaving last year’s $31 billion milestone in the rearview mirror,” it said.
“ETF growth is expected to continue, driven by the ongoing shift from high-cost funds to low-cost strategies, greater adviser adoption as ETFs become integral to portfolio construction, expanding product innovation, and the rapid rise of digital platforms that make investing easier and more accessible for all types of investors. Together, these factors set the stage for sustained ETF market expansion for many years to come.”
AUTHOR
Laura Dew
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