The Largest ETFs in Australia by Funds Under Management
Size matters in the ETF world, but perhaps not in the way you might think. When we talk about the "largest" ETFs, we're referring to Funds Under Management (FUM)—the total amount of money invested in each ETF. In this guide, we'll explore Australia's largest ETFs and explain why FUM matters for investors.
Why Size Matters
The size of an ETF, measured by FUM, can impact several important factors:
Liquidity
Larger ETFs typically have better liquidity, meaning you can buy and sell shares more easily with tighter spreads between buy and sell prices. This is particularly important for investors who may need to trade frequently or in large amounts.
Tracking Accuracy
Larger ETFs often track their underlying index more accurately. With more assets, they can spread costs more efficiently and maintain better tracking of the index they're designed to follow.
Stability
Large ETFs are generally more stable and less likely to be closed or merged. Fund managers are more committed to maintaining larger, successful products.
Lower Costs
While not always the case, larger ETFs sometimes benefit from economies of scale, which can lead to fee reductions over time.
The Largest ETFs by FUM
Here are the largest ETFs on the ASX by Funds Under Management:
Largest ETFs by Funds Under Management
| ETF | Name | FUM | Monthly Change | Fee |
|---|---|---|---|---|
| VAS | Vanguard Australian Shares Index ETF | $21.9B | $-775.0M | 0.07% |
| VGS | Vanguard MSCI Index International Shares ETF | $14.0B | $180.1M | 0.18% |
| IVV | iShares S&P 500 ETF | $13.2B | $262.4M | 0.04% |
| A200 | Betashares Australia 200 ETF | $8.5B | $-104.9M | 0.04% |
| QUAL | VanEck MSCI International Quality ETF | $8.0B | $42.4M | 0.40% |
| NDQ | Betashares NASDAQ 100 ETF | $7.7B | $-165.9M | 0.48% |
| IOZ | iShares Core S&P/ASX 200 ETF | $7.7B | $-180.9M | 0.05% |
| MGOC | Magellan Global Fund -Open Class Units -Active ETF | $6.6B | $-190.9M | 1.35% |
| VTS | Vanguard US Total Market Shares Index ETF | $6.5B | $44.9M | 0.03% |
| DACE | Dimensional Australian Core Equity Trust – Active ETF | $6.3B | $-121.3M | 0.28% |
| STW | SPDR S&P/ASX 200 ETF | $6.1B | $-163.3M | 0.05% |
| GOLD | Global X Physical Gold | $6.0B | $225.7M | 0.40% |
| VGAD | Vanguard MSCI Index International Shares (Hedged) ETF | $6.0B | $42.4M | 0.21% |
| VHY | Vanguard Australian Shares High Yield ETF | $6.0B | $23.6M | 0.25% |
| IOO | iShares Global 100 ETF | $5.5B | $0.5M | 0.40% |
| VEU | Vanguard All-World ex US Shares Index ETF | $5.1B | $92.3M | 0.04% |
| DGCE | Dimensional Global Core Equity Trust (Unhedged Class) – Active ETF | $5.0B | $61.4M | 0.30% |
| AAA | Betashares Australian High Interest Cash ETF | $4.7B | $112.2M | 0.18% |
| VBND | Vanguard Global Aggregate Bond Index (Hedged) ETF | $4.1B | $77.8M | 0.20% |
| ETHI | Betashares Global Sustainability Leaders ETF | $3.8B | $-44.7M | 0.59% |
| DFGH | Dimensional Global Core Equity Trust (AUD Hedged Class) – Active ETF | $3.7B | $38.6M | 0.30% |
| HYGG | Hyperion Global Growth Companies Fund - Active ETF | $3.7B | $-356.5M | 0.70% |
| IAF | iShares Core Composite Bond ETF | $3.5B | $18.3M | 0.10% |
| VDHG | Vanguard Diversified High Growth Index ETF | $3.5B | $18.4M | 0.27% |
| BGBL | Betashares Global Shares ETF | $3.3B | $155.7M | 0.08% |
Total Market FUM
The total Funds Under Management across all Australian ETFs is $311.9B.
This figure represents the total size of the Australian ETF market and shows how much capital is invested in ETFs overall.
Market Concentration
Market Concentration Analysis:
- Top 10 ETFs represent 32.2% of total market FUM
- Remaining ETFs represent 67.8% of total market FUM
- This indicates moderate concentration in the largest ETFs.
Market concentration analysis helps understand whether the ETF market is dominated by a few large products or more evenly distributed. High concentration can indicate investor preferences and market maturity.
FUM Growth Leaders
These ETFs have seen the largest increases in Funds Under Management recently:
FUM Growth Leaders
| ETF | Name | Monthly FUM Change | Current FUM |
|---|---|---|---|
| QGFH | Quay Global Real Estate Fund (AUD Hedged) Active ETF | $690.5M | $690.5M |
| QGRU | Quay Global Real Estate Fund (Unhedged) Active ETF | $574.1M | $574.1M |
| IVV | iShares S&P 500 ETF | $262.4M | $13.2B |
| GOLD | Global X Physical Gold | $225.7M | $6.0B |
| VGS | Vanguard MSCI Index International Shares ETF | $180.1M | $14.0B |
| PGA1 | Plato Global Alpha Fund Complex ETF | $175.1M | $801.3M |
| BGBL | Betashares Global Shares ETF | $155.7M | $3.3B |
| GDX | VanEck Gold Miners ETF | $147.4M | $1.4B |
| DIFF | Perpetual Diversified Income Active ETF | $136.6M | $199.4M |
| E200 | SPDR S&P/ASX 200 ESG ETF | $127.4M | $246.9M |
| ISEC | iShares Enhanced Cash ETF | $119.8M | $489.2M |
| AAA | Betashares Australian High Interest Cash ETF | $112.2M | $4.7B |
| IXJ | iShares Global Healthcare ETF | $109.3M | $1.5B |
| HGBL | Betashares Global Shares Currency Hedged ETF | $92.4M | $2.1B |
| VEU | Vanguard All-World ex US Shares Index ETF | $92.3M | $5.1B |
Rapid FUM growth can indicate strong investor interest, good performance, or effective marketing. However, it's important to remember that growth in FUM doesn't necessarily correlate with future performance.
Understanding FUM Changes
FUM can change for several reasons:
- New Investments: Investors buying into the ETF
- Withdrawals: Investors selling their holdings
- Market Performance: Rising or falling asset values
- Distributions: When ETFs pay distributions, FUM temporarily decreases
Monthly FUM changes reflect the net flow of money into or out of an ETF, combined with market performance effects.
Size vs Performance
It's worth noting that larger ETFs aren't necessarily better performers. Size and performance are separate considerations:
- Size affects liquidity, tracking, and stability
- Performance depends on the underlying assets and market conditions
Some of the best-performing ETFs might be smaller, specialised products, while some of the largest ETFs might have more modest but consistent returns.
Popularity Indicators
Large FUM can indicate several things:
- Investor Confidence: Large FUM often reflects strong investor confidence in the ETF
- Track Record: Established ETFs with good track records tend to attract more capital
- Provider Reputation: ETFs from well-known providers often gather more assets
- Marketing: Effective marketing and distribution can drive FUM growth
Considerations for Investors
When evaluating ETF size:
- Liquidity Needs: If you need high liquidity, larger ETFs are generally better
- Investment Size: Large investments benefit from the liquidity of large ETFs
- Trading Frequency: Frequent traders should prioritise larger, more liquid ETFs
- Long-Term Holders: For buy-and-hold investors, size is less critical than other factors
The Evolution of the Australian ETF Market
The Australian ETF market has grown significantly over the past decade. What started as a niche investment option has become mainstream, with total FUM growing from billions to tens of billions of dollars.
This growth reflects:
- Increased investor awareness and education
- Lower fees making ETFs more attractive
- Better product variety and choice
- Growing acceptance of passive investing strategies
Conclusion
Understanding ETF size, measured by Funds Under Management, helps investors make more informed decisions. While larger ETFs offer benefits like better liquidity and tracking accuracy, size should be considered alongside other factors like fees, performance, and alignment with your investment objectives.
When selecting ETFs:
- Consider your liquidity needs
- Evaluate tracking accuracy and stability
- Don't assume larger means better performance
- Consider the provider's commitment to the product
- Align size considerations with your investment strategy
For detailed FUM data and trends on specific ETFs, visit their individual pages on our website, where you can see current FUM, monthly changes, and historical trends.
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