Despite a volatile November, Betashares found Australia’s ETF industry posted strong flows of $4.3bn – marking the fifth straight month of inflows over $4bn.
The latest monthly Betashares ETF report reported $4.3 billion of inflows into Australian ETFs throughout November, pushing the industry to a record $324.9 billion in funds under management (FUM) – a rise of $3.2 billion.
The industry has now exceeded Betashares’ $320 billion forecast for 2025, keeping it on course to reach the firm’s predicted $500 billion figure by the end of 2028.
It marks the fifth consecutive month the industry has received over $4 billion worth of inflows, having grown by 33.8 per cent or $82 billion over the last 12 months. It did however mark a decrease from October’s $5.99 billion in flows – only the third month on record in which inflows had topped $5 billion.
Betashares also found the number of Australian ETF investors surpassed 2.7 million in 2025, with another 300,000 indicating they plan to start investing in ETFs in 2026. According to the firm, 411,000 Australians began investing in ETFs this year, the second highest increase since 2020.
Based on these figures, Betashares’ CEO Alex Vynokur said Australia is on track to reach a record three million ETF investors by 2026.
“More than ever, Australians are turning to ETFs as a foundation for their financial future, attracted by their convenience, cost-effectiveness, and ability to fit seamlessly into a broad range of portfolio strategies,” Vynokur said.
November was also a busy time for fund launches, with 11 new ETFs debuting during the month. Some key launches included Ten Cap’s first active ETF and BlackRock’s Australian debut of its bitcoin ETF – a category that has since become the firm’s top revenue earner.
In terms of performance, gold miners dominated, with the Betashares Global Gold Miners Currency Hedged ETF continuing its year-to-date performance lead returning 15.35 per cent for the month, followed by VanEck’s Gold Miners ETF at 14.94 per cent.
Other precious metals also made the top five, with the Betashares Energy Transition Metals ETF returning 11.31 per cent and Global X Physical Silver delivering 9.88 per cent.
Meanwhile, the Vanguard Australian Shares Index ETF remained the largest ETF, although its market cap slipped from $22.6 billion in October to $21.9 billion in November.
After October saw a 46 per cent surge in fixed income and cash ETF inflows – partly driven by hybrid security roll-offs – flows in the category eased back from $1.79 billion to $1 billion in November.
However, the category still ranked third for inflows, behind international equities at $1.5 billion (down from $1.94 billion in October) and Australian equities at $1.2 billion (down from $1.45 billion).
In 2025, international and Australian equities continue to receive the highest amount of ETF investor inflows, currently sitting at $17.3 billion and $10.6 billion respectively.
Smart beta record
Meanwhile, VanEck reported that smart beta assets under management (AUM) reached an all-time high of $50 billion during the month.
Based on the firm’s projections, smart beta ETFs are now expected to double their assets under management to $100 billion by 2029.
Commenting on the new record, VanEck Asia Pacific CEO and MD Arian Neiron said that while active launches have outpaced passive this year, smart beta solutions are increasingly proving well-suited to the current market environment.
“As investors position portfolios for 2026, several signals suggest that a more discerning approach to market exposures is warranted. This dynamic is likely to accelerate demand for smart beta solutions in the years ahead,” Neiron said.
This perspective echoes VanEck’s earlier claim of an accelerated shift to smart beta ETFs on the back of a surge in adviser adoption over the past year.