Vanguard triumphs over rivals in 2024 Australia | Market wire

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US funds giant Vanguard has crushed off nearest challengers Sydney-based Betashares and US rival BlackRock to turn out to be Australia’s best-selling exchange traded fund supplier in 2024, after it pulled in almost A$10bn ($6.2bn) throughout all its domestically listed methods.

Australia’s ETF sector loved one other 12 months of huge growth in 2024 as web new money reached A$30.8bn, double the A$15bn collected during the earlier 12-month period, primarily based on the latest model of the Betashares Australian ETF review.

Vanguard was the largest beneficiary of this growth because it took in A$9.5bn in web new money between January and December, representing round 31 per cent of whole industry flows.

This displays a enormous 112 per cent leap from the earlier 12 months, when it collected web inflows of A$4.5bn, in response to the report.

It has pulled forward of Betashares, which recorded A$8.26bn in web flows final 12 months, an increase of simply 32 per cent from the earlier 12 months, when it noticed A$5.63bn in web new money.

It is usually forward of US rival BlackRock’s iShares, which itself inched forward of VanEck to emerge because the third best-selling ETF supplier in Australia with A$6.6bn in web flows over the whole lot of 2024.

The 2 US companies have remained neck and neck, nonetheless, as VanEck had A$6.1bn in web flows final 12 months. In 2023, BlackRock and VanEck recorded web inflows of A$2.9bn and A$2.95bn respectively.

Betashares famous that the Australian ETF industry continued to be extremely concentrated, with the highest three issuers in phrases of flows accounting for a mixed A$24.4bn or almost 80 per cent of all of the new money ploughed into the sector final 12 months.

In the meantime, Mirae Asset‘s Global X outpaced Melbourne-based Talaria Asset Management to become the top five ETF provider by flows with A$1.2bn last year.

Vanguard’s giant flagship Australian equities ETF, which is the nation’s largest ETF for the third 12 months in a row, was a huge contributor to the fund firm’s annual flows.

The Vanguard Australian Shares Index ETF ended 2024 with belongings of A$17.9bn, after drawing in A$2.3bn in web flows over the 12 months. It was each the highest ETF product by belongings and inflows final 12 months.

BlackRock’s iShares S&P 500 ETF climbed up one spot on the record of Australia’s largest ETFs, after it grew its belongings to A$11bn over the 12 months. It changed the Vanguard MSCI Index Worldwide Shares ETF, which had A$10bn in belongings as of end-2024.

Australia’s ETF industry ended the 12 months at an all-time high, with A$246.3bn in whole belongings throughout the 403 merchandise listed on the Australian Securities Alternate and Cboe Australia.

That displays a vital year-on-year increase of 38.8 per cent, or A$68.9bn, a file for the flourishing industry.

Vanguard can also be the industry’s largest ETF supplier by belongings, holding round A$67.17bn throughout 29 exchange traded merchandise, in response to the latest ASX knowledge.

Betashares has additionally retained its spot as second out of the 53 ETF issuers in Australia, with A$44.52bn in funds beneath management.

The highest 5 is rounded out by BlackRock’s iShares, with A$42.22bn in belongings, VanEck at A$23.6bn, Dimensional Fund Advisors at A$15bn and Magellan at A$10.4bn, in response to ASX knowledge.

*Ignites Asia is a news service revealed by FT Specialist for professionals working within the asset management industry. Trials and subscriptions can be found at ignitesasia.com.