Vanguard’s ETF funds under management have reached $90 billion while Magellan has lost its position as the largest active ETF after reporting $1.9 billion in outflows.
Five of the provider’s ETFs were among the products which saw the highest annual inflows with its Vanguard Australian Shares Index ETF gaining more than $3 billion.
This is the largest ETF in the industry with $22.5 billion in market cap, although it suffered outflows of $139 million in November, with the Vanguard MSCI Index International Shares ETF in second place with $14.2 billion.
Succeeding Vanguard in terms of overall annual flows was Betashares which gained $13.6 billion during the year and iShares which saw inflows of $7.9 billion.
Betashares’s largest ETF is the Betashares Australia 200 ETF, some $8.8 billion in size, while iShares largest vehicle is the iShares S&P 500 ETF is $13.1 billion, both substantially behind the Vanguard flagship product.
Vanguard, Betashares and iShares collectively took in $37.5 billion in flows during the year, accounting for almost three-quarters of industry flows.
Another notable move was the Magellan Global Fund (Open Class) (Managed Fund) dropping five positions to ninth place in terms of AUM with $6.3 billion, meaning it is no longer the largest active ETF after losing $1.3 billion during the year.
This has been replaced by the Dimensional Australian Core Equity Trust (Managed Fund) which stands at $6.4 billion and rose from 11th position last year to eighth position.
Outflows affected not only the global fund at Magellan but its Magellan High Conviction Trust (Managed Fund) lost $453 million and its Magellan Infrastructure Fund (Currency Hedged) (Managed Fund) lost $154 million.
All but one of the 10 largest outflows during the year occurred in active ETFs with the only exemption being Global X US Treasury Bond (Currency Hedged) ETF which lost $109 billion. The US Treasury category also reported the largest outflows over the year with ETFs focused on this asset losing $193 million.
However, Betashares noted overall active ETF net inflows rose to 11 per cent.
Largest ETF products as of end of 2025
| ETF | Market cap |
| Vanguard Australian Shares Index | $22.5 billion |
| Vanguard MSCI Index International Shares | $14.2 billion |
| iShares S&P 500 | $13.11 billion |
| Betashares Australia 200 | $8.87 billion |
| VanEck Vectors MSCI World ex-Australia Quality ETF | $8.07 billion |
| iShares Core S&P ASX 200 | $7.78 billion |
| Betashares NASDAQ 100 | $7.69 billion |
| Dimensional Australian Core Equity Trust (Managed Fund) | $6.43 billion |
| Magellan Global Fund (Open Class) (Managed Fund) | $6.37 billion |
| Vanguard US Total Market Shares Index | $6.36 billion |
Source: Betashares, January 2026
Looking at Vanguard’s specific products, Vanguard MSCI Index International Shares ETF gained $2.6 billion, Vanguard Global Aggregate Bond Index (Hedged) ETF and Vanguard Australian Shares High Yield ETF both gained $1.6 billion each and the hedged version of the International Shares fund gained $1.4 billion.
Daniel Shrimski, managing director of Vanguard Investments Australia, said: “The Australian ETFs industry had an incredible year, with investors’ inflows and the industry’s assets under management reaching new heights.
“At the end of 2023, when industry assets were around $170 billion, we were talking about when industry assets would exceed $200 billion. They did in 2024, and by the end of 2025 they had exceeded $300 billion.
“So, in just over the last two years alone, the size of the Australian industry has almost doubled. That’s testament to the huge increase in the number of Australians now using ETFs as the core of their investment portfolio.
“Vanguard’s expectations are that the Australian ETFs industry will remain on a strong growth trajectory as more Australians discover their benefits and as more low-cost index-tracking ETF products offering a greater choice of investment strategies are listed on the ASX.”
