Australia’s exchange traded fund (ETF) industry is on track to surpass $400 billion in assets under management after finishing the first half of 2026 at a record $372 billion, according to the latest Australian Half Year ETF Review from Betashares.
The industry grew by 12.6 per cent over the six-month period, with total assets increasing by $41.6 billion. Investors poured a net $30 billion into ETFs during the half, matching the amount invested across the entirety of 2024 and highlighting the continued popularity of the investment vehicle.
The strong growth has put the industry within striking distance of the $400 billion milestone just months after crossing the $350 billion mark.
International equity ETFs remained the most sought-after asset class, attracting $13.7 billion in inflows, followed by Australian equities with a record $8.8 billion and fixed income ETFs with $4.7 billion. Passive investment strategies dominated investor demand, drawing $27.5 billion in inflows compared with $2.4 billion for active ETFs.
Also read: Betashares Launches a New Low-Cost Fixed Income ETF
Despite heightened market volatility, trading activity remained robust, with ETF trading values reaching $125 billion over the half year. The number of listed ETFs also continued to expand, rising to 496 products across 66 issuers.
Vanguard led industry inflows with $10.7 billion, ahead of Betashares and iShares, with the top three providers collectively capturing 76 per cent of all industry flows during the first half of 2026.
