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Australian ETF News 

ETF industry growth streak continues, shatters net inflow records. The ETF industry has stretched its growth streak to 71 months of consecutive net inflows, and amassed a record US$620.5 billion year-to-date, according to consultancy firm ETFGI. These record-breaking net inflows year-to-date steamrolled the previous record of US$464.2 billion set last year, and before that, US$464.2 billion in 2021. 

This was achieved despite turbulence in the VIX Index, the US market’s “fear gauge,” which spiked earlier this year following President Donald Trump’s announcement of sweeping tariffs on all US imports. The initial shock triggered a global market selloff, erasing US$5 trillion in S&P 500 market value within 48 hours. That sent the VIX Index to levels unseen since the pandemic panic, and prior to that, the Global Financial Crisis. In April, the most recent reporting date, net inflows totalled US$157 billion. A substantial portion (US$88.3 billion) came from the top 20 ETFs by net new assets, according to ETFGI. 

 Vanguard ETFs claim first, second, and third place for April inflows. A trio of Vanguard ETFs topped April inflows, pulling in over $1.1 billion, according to Betashares’ Australian ETF review. The Vanguard Australian Shares Index ETF brought in $533.6 million in inflows, followed by the Vanguard MSCI Index International Shares (Hedged) ETF with $374.5 million, and the Vanguard MSCI Index International Shares ETF at $262.2 million. The first two ETFs are also the largest by market capitalisation at $19.27 billion and $10.47 billion, respectively. Year to date, Vanguard has recorded the highest ETF issuer flows, amassing $5.3 billion, 33.28% of the industry total. 

ETFs Crush it, Unlisted Unit Trusts Struggle – Inflows / Outflows. According to Rainmaker, over the past year of the 160 managers in Rainmaker’s database, 90 had net outflows, with a median outflow of $104 million. Among managers with net inflows, the median was $142 million. Betashares posted the highest net flows over the period ($8.8 billion), followed by BlackRock ($8 billion), Vanguard ($6.6 billion), and VanEck ($4.2 billion). This placement is reflective of the stark divide between unlisted unit trusts and ETFs: unlisted unit trusts saw negative net flows of $15.7 billion, whereas ETFs benefited from positive net flows of $29 billion. Seven asset class sectors had positive net flows over the period: short-duration bonds (credit, high yield and absolute return), Australian equities large cap, diversified bonds, international equities small caps, cash, international equities large cap, and emerging markets equities.  

 US ETF Flows by Asset Class 

 The value of ETF flows data is relatively obvious – it highlights asset class inflows and outflows. As such, it illustrates investor asset class preferences at any given time. Relative to the ASX data, which is monthly, US data is available on both a more frequent and timely basis.  The data below is as at 22 May 2025. 

Global Select ETF Launches

New issue ETFs reflect ‘real-time’ investment theme investor sentiment. i.e, what’s ‘hot’. Additionally, the largest Australian ETF issues are all part of large international entities. And often what ETF is issued in their home markets and, to some degree, subsequently issued in Australia.

Regarding the table below, there are several distinct themes reflecting investor preferences currently:

• German equities ETFs – Germany has been running hot all of 2025. Initially it was a relative value play vs the US. Then it became a defense sector play as well as the major theme of a diversification away from the US.
• Income related ETFs – defensive, fixed income products, partly reflecting the more defensive or at least diversification of portfolios given a range of uncertainties, particularly in the US and in US equities.
• The Innovator Capital Management launched the Innovator Equity Managed 100 Buffer ETF is an interesting product. It is an actively managed solution that seeks to provide 100% downside protection through a one-year laddered options portfolio. It is reflective of many ETFs that have been issued over the circa last 4-6 weeks particularly in the US – equities exposure but with either downside preservation or downside protection.
• Global / international equities ETFs. Same theme – diversification away from the US.
• Franklin Templeton to convert 10 Putnam Municipal Bond mutual funds to ETFs. I wonder why. These is a very common dynamic these days

Select ETF Launches, for May 8th to 22nd 2025 .xls

Figure : Select ETF Launches, for May 8th to 22nd 2025
Select European ETF Launches
STOXX launches DAX Composite Indices
First Trust launches three ETFs on Deutsche Börse
Crédit Agricole and Solactive launch Solactive Constant Maturity Government Bond Index Family
Janus Henderson launches UCITS mortgage-backed securities ETF
Franklin Templeton to convert 10 Putnam Municipal Bond mutual funds to ETFs
Select US ETF Launches
Vontobel Asset Management, Inc. launched the Vontobel International Equity Active ETF
Lazard Asset Management converted the Lazard International Equity Advantage mutual fund into an ETF
Innovator Capital Management launched the Innovator Equity Managed 100 Buffer ETF
Russell Global Infrastructure Active ETF