Global X ETFs Australian ETF Market Scoop | Q4 2023
The Australian Exchange Traded Fund (ETF) market grew 33% over the past year to $177.6 billion across 346 products. This was driven by over $15 billion in net inflows, positive market movements, and numerous unlisted active funds converting into active ETFs.
Inaugurating its quarterly ETF Market Report, Global X explores prevailing trends within the ETF market, providing comprehensive insights into:
- The best and worst performing ETFs
- Technology ETFs surged driven by mega-tech growth amid rapid artificial intelligence (AI) innovation and a promising economic outlook in the face of a potential recession.
- Energy transition and clean energy ETFs were the poorest performers, weighed down by higher interest rates which impacted borrowing costs given their long project timelines and higher reliance on debt.
- The most and least popular ETFs (by net flows)
- The majority of net flows were directed toward low-cost vanilla ETFs, with the Vanguard Australian Shares Index ETF (VAS) leading the way by securing the highest calendar year net flows among all ETFs for six consecutive years.
- A feature insight on the ETF industry: the struggle of active ETFs
- The bulk of the net flows continue to pour into index-based products, reflecting investors preference for passive investment strategies.
Moving forward, the Global X ETFs report will be released on a quarterly basis to offer regular updates on the dynamic landscape of the ETF market.
