Record Vanguard ETF flows drive April inflows
The volume of flows into ETFs grew by almost a third in April, according to VanEck, with two Vanguard funds seeing heavy inflows.
The firm’s monthly ETF report found April’s flows were $4.5 billion, compared to $3.4 billion in March, a 32 per cent increase.
Vanguard’s Australian Shares Index ETF saw particularly strong growth at $563 million, up from $403 million in the previous month. This was followed by Vanguard MSCI Index International Shares (Hedged) ETF which gained $400 million, more than double the $163 million seen in the previous month, and Vanguard MSCI Index International Shares ETF which gained $269 million.
In a separate statement, Vanguard Australia noted it had seen $1.8 billion of inflows during the month which was the highest month on record for the provider, helping year-to-date ETF inflows reach $5.4 billion.
Managing director, Daniel Shrimski, said: “We’ve had a very strong start to the year, and we’re proud that Australians are continuing to embrace Vanguard’s investing philosophy with our low-cost ETFs, managed funds and superannuation.”
VanEck said Australian equities were popular during the month, seeing $1.6 billion in flows compared to just over $1 billion in March. As well as the two Vanguard funds, other popular Australian equity ETFs were iShares S&P/ASX 200 ($257 million), Vanguard Australian Shares High Yield ($199 million), Betashares Australia 200 ($125 million) and SPDR S&P/ASX 200 ($124 million).
However, they remain below international equities which saw more than $2 billion in inflows. While international equities have been popular over the past year, April’s sum was a significant increase from $776 million during March.
The asset class was the “clear frontrunner” last year when they reported $15 billion in inflows during 2024.
Following two months of market cap falls during February and March, the local ETF market exceeded the $250 billion milestone in total funds under management (FUM) in April, gaining 3.5 per cent to $258.9 billion.
“The Australian ETF industry crossed back over the $250 billion mark in April, after regressing in the two months prior due to market declines,” VanEck noted.
“This marks the 10th consecutive month of $3 billion+ flows into Australian-based ETFs, with investors rotating out of US stocks and allocating heavily to international equity ETFs ($2.1 billion), followed by Australian equity ETFs ($1.7 billion).”
AUTHOR
Laura Dew
Recommended for you
State Street has rebranded its State Street Global Advisors arm, which has US$4.6 trillion in assets under management, following a series of deals with financial services firms in recent months.
Northern Trust Asset Management has appointed a new head of international and responsible investing.
More than 20 winners have been revealed for the annual Fund Manager of the Year Awards.
Regal Partners has announced its latest alternatives acquisition, taking a 50 per cent stake in real estate and advisory platform Ark Capital Partners ahead of a future hotel strategy launch.
