Year-to-date flows into the two-largest ETF providers are more than double the volume they were at the same time last year as Vanguard’s largest ETF passes $20 billion.
Vanguard announced that its Australian Shares Index Fund passed $20 billion at the end of May, making it the largest ETF in Australia and up from $14.9 billion a year ago, seeing growth of 34 per cent during the year.
The size is almost double the second-largest ETF which is the $11 billion Vanguard MSCI Index International Shares ETF.
The success of Vanguard means it now represents 27.3 per cent of the Australian ETF industry with $74.6 billion in funds under management and 31 ETFs available.
Looking at flows year-to-date, Vanguard has seen flows of $6.2 billion which represents 32 per cent of all total ETF flows.
This sum is 181 per cent higher than its flows at this point in 2024 when they stood at $2.2 billion and put Vanguard in third place behind Betashares and iShares.
Betashares, which held the top position this time last year with 28 per cent of total flows, dropped into second position with YTD flows of $5.3 billion, up 120 per cent from flows of $2.4 billion in May 2024.
Last year’s second place provider, iShares, saw only a moderate rise in comparison to the two leaders with growth of $2.9 billion, representing growth of 31 per cent.
YTD ETF flows as of 31 May 2025
|
Provider |
YTD flows to May 2024 |
YTD flows to May 2025 |
|
Vanguard |
$2.2 billion |
$6.2 billion |
|
Betashares |
$2.4 billion |
$5.3 billion |
|
iShares |
$2.2 billion |
$2.9 billion |
Source: Betashares, June 2025
Looking at total funds under management, Vanguard has a 27.3 per cent market share, Betashares has a 18.8 per cent share with $51.4 billion in funds under management, and iShares has $45.8 billion in funds under management, representing a 16.7 per cent market share.
This means the three-largest providers now account for almost two-thirds of the Australian ETF industry, while the fourth-largest firm VanEck has just 9.4 per cent market share.
Commenting on the growth of the Vanguard Australian Shares Index, managing director of Vanguard Australia, Daniel Shrimski, said: “The growth of VAS reflects the increasing confidence Australian investors have in index investing and the Vanguard approach.
“ETFs like VAS have democratised investing. They’ve made it possible for everyday Australians to build wealth in a simple, low-cost and effective way.
“The benefits of indexing – transparency, diversification, and low costs – are better understood now, but we’ve still got work to do.”
