Record $42bn growth for Aussie ETFs

The market cap of the Australian ETF industry has reached another all-time high.

The Australian ETF industry ended 2021 with a market capitalisation of $136.9 billion according to BetaShares, an increase of $41.8 billion or 44 per cent on the previous year.

This was the largest growth ever for local ETFs in dollar terms but was down slightly in percentage terms from the growth of over 50 per cent seen in both 2019 and 2020.

Inflows totalled $23.2 billion for the year, 13 per cent higher than 2020 and the highest net flows on record.

Market appreciation was a key driver of growth for the industry and accounted for 45 per cent of the total growth for the year.

BetaShares chief commercial officer Ilan Israelstam said that the firm’s forecast last year of $110-$120 billion in funds under management for 2021 had been “smashed”.

“In terms of 2022, we believe the industry will continue to grow strongly, although we doubt it will be as assisted by the market as occurred in 2020,” he said.

“We forecast total industry FUM at end 2022 to be in the range of $180-$190 billion.”

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Source: Record $42bn growth for Aussie ETFs – InvestorDaily