Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Register

31 December 2025

Home / White Papers 2019

Australian ETF Review: June 2019 half-year

Industry breaks the $50 billion milestone

• The first six months of 2019, saw a number of records broken in the ETF industry, which broke the $50B milestone as at end June.

• The industry’s funds under management increased a very significant 25% for the half to end the financial year at a new record high of $50.9B, with the industry growing FuM by a full $10.1B

• The source of growth for the industry was approximately split evenly, with 43% of the growth coming from net inflows (i.e. rather than asset appreciation) - $4.4B flowing into the industry over the course of the half-year. This compares to a figure of $2.7B for the first half of 2018, showing that the pace of industry growth is well and truly on the rise

• Flows by issuer were relatively more concentrated than 2018 with the top 2 issuers (Vanguard & BetaShares) receiving ~60% of the industry flows and the largest 3 issuers combined receiving ~80% of flows (being Vanguard, BetaShares and iShares)

• Product development activity was somewhat muted for the first half of 2019, with only 7 new products launched (compared to 10 new products launched in the first half of 2018). That said, we do expect significantly more product launches in the second half of the year.

• By inflows, passive index products took in the vast majority of flows for this half year (82%), which took share away from both Active and Smart Beta exposures which each took 9% of industry flows

• Given the fast growth of the industry this year to date, we are upgrading the forecast we made at the end of last year ($50-$55B) and now expect total industry FuM at end 2019 to be in the range of $55-$60B.

 

  •   17 July 2019
  • 1
  •      
  •   
Firstlinks is sponsored by:
banner

Most viewed in recent weeks

Australia's retirement system works brilliantly for some - but not all

The superannuation system has succeeded brilliantly at what it was designed to do: accumulate wealth during working lives. The next challenge is meeting members’ diverse needs in retirement. 

Australian stocks will crush housing over the next decade, 2025 edition

Two years ago, I wrote an article suggesting that the odds favoured ASX shares easily outperforming residential property over the next decade. Here’s an update on where things stand today.

The 3 biggest residential property myths

I am a professional real estate investor who hears a lot of opinions rather than facts from so-called experts on the topic of property. Here are the largest myths when it comes to Australia’s biggest asset class.

AFIC on the speculative ASX boom, opportunities, and LIC discounts

In an interview with Firstlinks, CEO Mark Freeman discusses how speculative ASX stocks have crushed blue chips this year, companies he likes now, and why he’s confident AFIC’s NTA discount will close.

Where to hide in the ‘everything bubble’

It might not be quite an ‘everything bubble’ but there’s froth in many assets, not just US stocks, right now. It might be time to stress test your portfolio and consider assets that could offer you shelter if trouble is coming.

Property versus shares - a practical guide for investors

I’ve been comparing property and shares for decades and while both have their place, the differences are stark. When tax, costs, and liquidity are weighed, property looks less compelling than its reputation suggests.

Latest Updates

Investment strategies

History says US market outperformance versus Australia will turn

Much has been made of how US markets, especially the NASDAQ, have significantly outperformed the ASX over the past two decades. History suggests the pendulum will swing back once again in Australia's favour.

Investment strategies

Announcing the X-Factor for 2025

What is the X-Factor - the largely unexpected influence that wasn’t thought about when the year began but came from left field to have powerful effects on investment returns - for 2025? It's time to select the winner.

Economy

The illusion of progress

What is progress? Is it GDP growth? Increasing wealth? New and improving technology? This argues that our measure of progress has become warped, and we're heading backwards rather than forwards.

Strategy

Our favourite summer reads

Summer is a great time to catch up on a good book. Here is a list of books on leadership, investing, and well-being for those looking to learn, reflect, and gain inspiration over the holiday season.

Sponsors

Alliances

Site Map

About Firstlinks

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.