Australian ETF Flows: Unpacking a Record-Breaking 2025

If 2024 hinted at accelerating ETF adoption in Australia, 2025 delivered the confirmation. Investors poured AUD 48.3 billion into ETFs over the year—an all-time high and a sharp jump from the already strong AUD 33.3 billion in 2024. Momentum also built steadily throughout the year, culminating in an especially strong fourth quarter, which alone contributed AUD 14.6 billion in new flows. 

Equities once again did the heavy lifting. Equity ETFs attracted AUD 9.2 billion in the fourth quarter and AUD 31.7 billion across 2025, outpacing the previous year’s tally of AUD 26.0 billion. Fixed income followed with a standout year of its own, gathering AUD 11.2 billion in 2025—nearly double the prior year’s flows. Commodity ETFs also saw renewed interest, bringing in AUD 1.9 billion, with gold and precious metals strategies leading the charge. 

By year-end, assets held in Australian ETFs climbed to AUD 317.9 billion, up from AUD 239.7 billion twelve months earlier. For a full look at category-level shifts, download the Australia ETF Flows: 2025 in Review report. 

Investors continued to favor equity ETFs in the fourth quarter, directing AUD 2.1 billion into the Australian large-blend Morningstar Category and AUD 1.3 billion into world large blend. And even though global exposures already skew heavily toward the U.S., investors still directed AUD 948 million specifically toward North America, making it the third most popular category for the period. 

In fixed-income, the diversified credit category came out on top. These strategies offer a mixed bag of ETFs offering domestic and international credit exposure. Traditional index-based fixed-income ETFs also saw consistent demand across both domestic and global segments, largely concentrated in sovereign bonds and high-grade corporate debt. Overall, ETFs have been a popular investment choice, with only a couple of small categories netting outflows. 

Active ETFs drew unprecedented flows in the fourth quarter of 2025, amassing almost AUD 3 billion in new money. For the full year, active ETF flows reached AUD 7.8 billion— a significant jump from AUD 5 billion in 2024.  

Active equity strategies brought in AUD 3.4 billion, a bit lower than AUD 4.0 billion the year before, while active bond strategies saw inflows of AUD 2 billion, a strong increase from AUD 472 million in 2024. 

Assets in active ETFs reached AUD 68.8billion at the end of 2025, rising from AUD 55.5 billion in 2024. Equity strategies remain the largest segment at AUD 48.9 billion in assets, representing around 70% of all active ETF holdings. Allocation ETFs followed with AUD 7.4 billion, accounting for 10.7% of assets, closely trailed by active fixed income ETFs at AUD 6.8 billion, or 9.8% of the market. 

Flows into active ETFs accounted for 16.2% of all ETF inflows in Australia in 2025, though active ETF contribution has fluctuated significantly in recent years. Active ETF assets represented 21.6% of total ETF assets at the end of 2025, down slightly from 23.1% in 2024. The active segment has grown in step with passive ETFs, with the 2023 spike driven by the launch of ETF structures for some larger existing investment trusts.

Dimensional Fund Advisors continues to dominate the active ETF landscape with a 25.6% market share at the end of 2025. The firm’s “dual-access” structure, introduced in 2023, allows investors to access its strategies through both mutual fund and ETF formats. 

Betashares followed with a 17.6% share and the Magellan Group held 12.3%. Vanguard secured its position as the fourth-largest provider with a 10.3% market share, supported by its strong presence in the allocation category.