ETFs

Summary:

Investors allocated an estimated $15.6 billion into Australian-listed ETFs for the week ending July 11, 2025, as the S&P/ASX 200 dipped 0.11% and bond yields rose, reflecting a mixed sentiment amid the RBA’s steady cash rate and the “One Big Beautiful Bill” (OBBBA) stimulus. Year-to-date inflows have reached approximately $285 billion, underscoring 2025 as a strong year for ETF adoption, though growth appears to be moderating compared to earlier projections.

Leading the inflows was the BetaShares Australian High Interest Cash ETF (AAA.AXW), attracting $2.4 billion despite a 0.04% price rise to 50.16, highlighting cash’s enduring safe-haven appeal amid tariff uncertainty and rate cut speculation. The BetaShares Australian Investment Grade Corporate Bond ETF (CRED.AXW) followed with $1.9 billion, up 0.12% to 23.49, driven by its 4.74% yield. The VanEck Vectors Australian Subordinated Debt ETF (SUBD.AXW) added $1.5 billion, gaining 0.06% to 25.11, bolstered by a 5.93% yield.

On the outflows side, the iShares Core Composite Bond ETF (IAF.AXW) led with $1.2 billion in redemptions, down 0.61% to 102.97, as investors adjusted fixed-income positions. The Vanguard Australian Government Bond Index ETF (VGB.AXW) shed $1.0 billion, falling 0.33% to 46.82, while the BetaShares Australian Government Bond ETF (AGVT.AXW) lost $0.8 billion, down 0.34% to 42.17, signalling a rotation toward higher-yield options. The market’s attention now turns to the August 1 tariff deadline and the trading week starting Monday.

^{*Closing price as at end of week. Returns in AUD before fees}