Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 655

ETF investors adding to portfolios during recent volatility

Geopolitical events like the current Middle East conflict and supply chain disruptions can create short term market volatility, but they rarely change the long-term fundamentals for investors as the Vanguard Index Chart demonstrates.

Vanguard has seen more than $1.5 billion of net inflows into its ETFs in the first half of March, already outpacing flows in January and February, indicating investors are using the volatility to add to their portfolios.

Flows have been focused towards equity ETFs, with a clear preference for broad-based, diversified core exposures.

The most popular ETF has been Vanguard Australian Shares ETF (VAS) with around $670 million of inflows, followed by Vanguard MSCI International Shares ETF (VGS) at approximately $440 million.

Other notable inflows include Vanguard Australian Shares High Yield ETF (VHY) with approximately $100 million and Vanguard MSCI Index Shares (Hedged) ETF (VGAD) with approximately $66 million, and the newly launched Vanguard S&P 500 ETF (V500), which has added around $45 million since launch.

Vanguard’s diversified ETF suite has also remained positive, totaling around $58 million of inflows.

Strong start to the year for ETFs

ASX ETF figures show that $4.4 billion flowed into Australian ETFs in February, following $5.1 billion in January. With this $9.5 billion of inflows recorded to February and a strong start to March, it is early days, but the ETF industry is on pace for a very strong year.

Total ETF assets in Australia passed $300 billion by the end of 2025, almost doubling in just over two years, from around $170 billion at the end of 2023.

Australians are leaning into diversification, discipline and low-cost exposure, and ETFs are a practical way to do that.

This response from investors is consistent with what Vanguard has seen in the past.

Market volatility is nothing new. History shows that those who ignore the emotional swirl of short-term market conditions and focus on long-term results tend to be rewarded for their patience and discipline.

Vanguard’s founder Jack Bogle himself said, “Stay the course. No matter what happens, stick to your program. I’ve said ‘stay the course’ a thousand times and meant it every time. It is the most important single piece of investment wisdom I can give to you.”

 

Andrew Jones is ETF Investment Product Manager at Vanguard Australia, a sponsor of Firstlinks. This article is for general information purposes only and does not consider the circumstances of any individual.

For more articles and papers from Vanguard Investments Australia, please click here.

 

  •   25 March 2026
  •      
  •   

 

Leave a Comment:

     

RELATED ARTICLES

An intriguing theory explaining persistent LIC discounts

The red metal's long game

Building a lazy ETF portfolio in 2026

banner

Most viewed in recent weeks

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.

Noel Whittaker’s take on the budget

Marketed as a fix for inequality and housing affordability, the latest budget instead delivers a tangle of tax changes that leave everyday Australians worse off.

Australia has no death duties. Technically.

Australia may not levy formal death duties, but a growing web of tax measures is quietly shaping what wealth passes between generations. Now, the 2026 budget adds another layer.

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.

Welcome to Firstlinks Edition 662 with weekend update

The debate over the budget is increasingly shaped by frustration and perceptions of unfairness, rather than clear-eyed assessment of policy outcomes.

Two months into retirement

A retirement researcher's take on retirement and her focus on each of her six resource buckets to stay engaged during the transition and beyond.

Latest Updates

Are the government’s CGT changes better for young investors?

New CGT rules promise fairness, but could young investors lose out? A practical scenario reveals how changes impact deposit goals, investment choices, and long-term wealth building for the next generation.

Retirement

How to minimise tax with a will

Inheritance tax implications in Australia may surprise some, as poor estate planning without proper wills or trusts can lead to costly tax bills and delays for beneficiaries.

Investment strategies

AI can’t pick winning funds, but it can help you avoid losers

Machine learning has been touted a game changer investment management. But a new study overturns claims that AI can generate positive alpha in mutual funds. Here are some practical takeaways for investors.

Investment strategies

Inflation BIG picture: Boomers got lucky, next Gen not so much

A 150-year view shows inflation's upward bias, driven by shifting monetary regimes and war stocks. This marks an end to the low-inflation boom that enriched boomers and ushers in a higher-inflation era for younger investors.

Planning

Tax deductibility of financial advice improves affordability

A shrinking adviser workforce and rising costs are squeezing access to financial advice, just as demand surges. Expanded tax deductibility offers a modest but meaningful boost to affordability.

Retirement

Retirement in reality – 3 months in

A reflection on travel mishaps, smart decision-making, time pressures and rebuilding health habits. Three months in, here's how to navigate the surprising realities of life after work.

Taxation

Calculating the business cost of Australia’s new 'productivity tax'

Amid a national productivity crisis, new economic analysis finds the tax changes in the 2026 Federal Budget create Australia’s first-ever by design 'Productivity Tax', where young people will pay the biggest price.

Sponsors

Alliances

© 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.