Andrew Campion, General Manager, Investment Products & Strategy at the Australian Securities Exchange, answers the questions about the exchange’s experience of the recent and rapid growth in take up of ETFs.
1. Can you give me a picture of the current ETF business on the ASX?
The ASX ETF industry has reached an important milestone — we’ve now listed our 400th ETF across 50+ ETF issuers, and total funds under management have surpassed AUD300 billion. That’s up from about AUD220 billion just a year ago.
The market now offers exposure across every major asset class — equities, fixed income, commodities, and alternatives — and increasingly, a diverse range of index-tracking, active, thematic, and sector-specific strategies.
Global equities remains the largest asset class accounting for ~50 per cent of assets, but fixed income has grown strongly in recent years as investors take advantage of higher yields and look for diversification after several years of equity-dominant flows.
ETFs have become a core part of how Australian retail investors access markets efficiently and transparently.
In terms of issuers, many of the major global issuers have ETFs admitted to ASX, such as Vanguard, Blackrock iShares, State Street Investment Management and Global X. We also have a broad range of local issuers. Notably, Betashares, a local issuer, is the second largest issuer on ASX by FUM and largest by number of products.
2. Has the ETF business seen growth in recent years?
It’s been a remarkable growth story. The Australian ETF industry continues to grow at a double-digit pace. In the past twelve months alone, the sector added around AUD80 billion in new assets, driven by both inflows and market performance. This reflects the growing acceptance of ETFs as a mainstream investment vehicle.
Five years ago, there were just over 200 ETFs with around AUD70 billion in assets. Today, that number has almost doubled in listings and quadrupled in assets.
3. Are there new strategies or types of ETFs arriving in the market?
Yes — and that’s one of the most exciting developments. We’ve seen a clear shift toward active ETFs, which now account for more than half of new listings on ASX and are expanding investor choice well beyond traditional passive exposures.
There’s also still strong interest in global equity strategies, which made up nearly half of new launches in the last 12 months. These span everything from index-tracking and factor-based strategies through to more targeted sector exposures — like infrastructure or defence.
In addition, thematic, and alternative strategies continue to attract new entrants.
While not within the ETF structure, we’ve seen innovative approaches to credit and private debt strategies in our closed-ended vehicle options on ASX, reflecting investor demand for yield in their investment portfolios.
4. What appetite is there for ETFs in Australia from both institutional and retail audiences?
Retail demand remains the powerhouse of Australia’s ETF ecosystem. More than two million Australians now hold ETFs, drawn by the simplicity, diversification, and low cost of accessing markets. ETFs are also becoming a core building block for financial advisers constructing client portfolios.
Institutional adoption, on the other hand, is still relatively early — estimated at less than 10 per cent of total ETF assets. But the interest is growing. Institutions are beginning to recognise the advantages ETFs offer in terms of liquidity, transparency, and ease of execution, particularly for tactical positioning and cash management. So, while retail investors continue to drive growth, institutional participation is a major long-term opportunity for the Australian market.
5. How does the exchange support ETF issuers?
ASX plays a central role in fostering the ETF ecosystem. We provide a robust listing and trading framework, which gives investors confidence in product quality and regulatory oversight. On the operational side, our trading and settlement systems support efficient and transparent market functioning.
We also work closely with issuers to streamline the listing process, helping them to bring new products to market, and promote market education to expand investor understanding of ETFs.
Beyond the mechanics, ASX is focused on ecosystem growth — from attracting market makers and liquidity providers to supporting innovation in areas like active management, sustainable investing, and digital infrastructure.
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