Key Insights
- ASX reports 36% growth in ETF funds under management, reaching $199 billion in the fiscal year ending June 30, 2024, with a 50% increase in average transactions.
- Australian and global equities were the main drivers of growth, increasing by $15 billion and $29 billion respectively, while fixed income grew by $5.2 billion.
- The number of ETF products on ASX has risen to 351, with 1.5 million Australians now holding at least one ETF.
SYDNEY (MarketsXplora) – The Australian Securities Exchange (ASX) reported on Tuesday that exchange-traded funds (ETFs) have experienced significant growth, with total funds under management (FUM) increasing by 36% to reach $199 billion in the fiscal year ending June 30, 2024.
The boom in ETF popularity was further evidenced by a 50% increase in the average number of transactions over the 12-month period, according to ASX data. The exchange also saw the addition of 59 new ETF products, bringing the total number of available ETFs to 351.
Andrew Campion, General Manager of Investment Products & Strategy at ASX, highlighted the sector’s rapid expansion.
“The rate of growth is very impressive – it was only a decade ago that FUM was below $10 billion,” Campion said.
He predicted further diversification in the market, including more fund managers, thematic ETFs, active strategies, and alternative assets such as cryptocurrencies.
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The ASX’s latest Investment Products Report revealed that Australian and global equities were the primary drivers of FUM growth. Australian equities increased by $15 billion (up 37%), while global equities rose by $29 billion (32%). Fixed income also saw substantial growth of $5.2 billion (up 24%), reflecting the current higher interest rate environment.
The report also noted that 7.7 million Australians currently invest in on-exchange investments, with 1.5 million holding at least one ETF. This growing investor base is expected to further fuel the popularity of ETFs in the Australian market.
As the ETF sector continues to evolve, Campion emphasized that “choice” would be the defining characteristic of the Australian ETF market’s future, promising an “exciting space to watch” for investors and industry observers alike.
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