Increases in ETF FUM can come from two sources: 1) an increase in the price of the ETF and its underlying holdings ; and 2) new investors moving their money into the ETF (i.e. flows).
Best ETFs by funds under management (FUM) growth
The highest FUM growth winners are the large, broad market ETFs that simply track a market index like the ASX or the S&P 500. Investors are more likely to be familiar with these ETFs – particularly the broader Australian, Global and USA markets.
The Vanguard Australian Shares Index ETF (VAS) continued to attract investor flows and retains its crown as the largest gainer with $722m in net flows and increasing its FUM by $925m (a 36% increase).
The BetaShares Australia 200 ETF (A200) has $545m in FUM since launching in May 2018. $524m of this is attributed to increased flows as price conscious investors flee its more pricey competitor (SPDR and iShares), seeking lower cost ETFs like A200’s 0.07% annual fee.
American markets rallied over the past year with both iShares S&P 500 ETF (IVV) and Vanguard US Total Market Shares Index ETF (VTS) increasing their FUM by 17% and 26% respectively.
Top 5 ETFs by Flows
The iShares Core Cash ETF (BILL) saw the highest flows out of all Bond ETFs, with $233m new money coming in. VanEck Vectors Australian Equal Weight ETF (MVW) continues another strong year of flows, and now has $708m in FUM, and could be the next $1b ETF if inflows continue.
Top 5 ETFs by FUM Growth
|ASX Code||ETF Name||FUM ($m) Mar’19||Annual change in FUM ($m)||Annual % Change in FUM|
|VAS||Vanguard Australian Shares Index ETF||3,458||926||36%|
|A200||Betashares Australia 200 ETF||545||545||N/A*|
|VGS||Vanguard MSCI Index International Shares ETF||1,484||544||58%|
|IVV||iShares S&P 500 ETF||2,911||421||17%|
|VTS||Vanguard US Total Market Shares Index ETF||1,515||308||26%|
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*A200 was launched on 7th May 2018.