Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Register

10 May 2026

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

Indexation implications – key changes to 2026/27 super thresholds

Stay on top of the latest changes to superannuation rates and thresholds for 2026, including increases to transfer balance cap, concessional contributions cap, and non-concessional contributions cap.

The missing 30%: how LIC returns are understated, and why it matters

The perceived underperformance of LICs compared to ETFs is due to existing comparison data excluding crucial information, highlighting the need for proper assessment and transparent reporting.

Little‑known government scheme can help retirees tap into $3 trillion of housing wealth

The Home Equity Access Scheme in Australia allows older homeowners to tap into their home equity for retirement income, yet remains underused due to lack of awareness and its perceived complexity.

Origins of the mislabeled capital gains tax ‘discount’

Debate over the CGT discount is intensifying amid concerns about intergenerational equity and housing affordability. This analysis shows that the 'discount' does not necessarily favor property investors.

2 billion reasons to fix retirement income

A proposal to address Australia's 'stranded balances' in retirement by requiring super funds to transition members to pension phase at 65, boosting retirement income and reframing super as a source of income.

The ultimate superannuation EOFY checklist 2026

Here is a checklist of 28 important issues you should address before June 30 to ensure your SMSF or other super fund is in order and that you are making the most of the strategies available.

Latest Updates

Investment strategies

Putting portfolios together when the world is falling apart

Global equity markets have grown more correlated due to globalization, but this trend may reverse which boosts the benefits of cross-country diversification.

Property

Housing belongs in the inequality story

Research highlights the significant impact of excluding housing income from income inequality analysis in Australia, arguing for the inclusion of imputed rent and capital gains to provide a more accurate picture.

Exchange traded products

Lithium's rally is real this time – but no-one trusts it

The lithium rally mirrors the early-2010s tech stock surge, with demand set to double by 2030. Supply has been slow to respond, creating a market deficit for future tech like humanoid robotics and solid-state batteries.

Economy

Why is Aussie inflation so stubborn?

Increasing our official cash rate contrasts with almost every other developed country in the world. Canada, UK, Europe, and USA, so far, have not reversed recent cuts while their inflation issues appear to be contained.

Strategy

How to stop Australian democracy going the way of the US

Around the world, democracy as a system of government is backsliding. After more than 50 years of liberal democracy in ascendancy, democratic progress plateaued around the turn of the century and is now going backwards.

Economy

Off-budget, but not off-the hook

Financial commentators await the federal budget with focus on debt and deficit. 'Off-budget' accounting alters the fiscal picture with unseen programs.

Economy

Shares rebound on hopes of war ending, but stalemate the likely outcome

Ashley Owen's abridged monthly snapshot uncovers what is front of mind for investors around the world and his view on the likely outcome of the stand-off in the Middle East.

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.