Infographic: How Australians have invested $30 billion

Betashares’ funds under management (FUM) reached a momentous $30 billion in September 20231 serving over one million Australians. Let’s explore the numbers.

The story in numbers

Betashares has come a long way since forming in 2009. At the time, the Australian ETF industry had just $5 billion of FUM. Today it stands at $152 billion2.

Three asset classes make up the majority of that $30 billion: international equities, cash & fixed income, and Australian equities.

In fact, cash & fixed income inflows have overtaken international equities for the first time in four years.

So far this year, nearly $2 billion or two-thirds of the $3.2 billion in inflows to Betashares funds have been to cash & fixed income.

This has been driven by substantial flows into:

The top three funds account for one third of total FUM:

 

The future of the industry

The last decade has seen the Australian industry largely following in the footsteps of the US industry. We expect market penetration relative to unlisted managed funds to follow a similar trajectory to the US.

US ETF AUM is now ~20% of managed fund AUM. Locally, this number is closer to 5%. If ETF penetration reaches the same level as the US, Australian ETFs could grow to a trillion dollars of AUM. Perhaps even within the next five to 10 years.

References:
1. As at 30/09/2023
2. ASX/CBOE/Betashares

 

This article mentions the following funds

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Annabelle Dickson

Annabelle Dickson was previously a journalist at Financial Standard and prior to that at The Inside Investor and The Inside Adviser. She holds a Bachelor of Arts in Communication (Journalism) from The University of Technology Sydney.

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