Australia’s exchange-traded fund (ETF) market experienced substantial growth in December, increasing by $5.5 billion to reach $330.6 billion. This surge capped off a record-breaking year for the industry, with overall funds under management expanding by 34.6 per cent. The Australian ETF sector continues to demonstrate robust expansion with a five-year compound annual growth rate of 28.3 per cent.
Throughout December, four new ETFs were introduced to the market, primarily from active managers, bringing the total number of available products to 462. The sector’s expansion was fuelled by $53.3 billion in net inflows, positive market performance, and the conversion of unlisted funds into active ETFs. Investors are increasingly using ETFs to access a variety of assets and investment strategies.
Precious metals investments led performance gains in the final month of the year, driven by rallies in gold, silver, platinum, and palladium prices. Silver reached an intramonth high of $US84 per ounce. According to Global X, a company that provides a range of ETF products allowing investors to access various markets and investment strategies, 2025 was a breakout year for Australian ETFs.
Global X senior product and investment strategist Marc Jocum noted that 2025 saw record flows, launches, and trading volumes. He highlighted commodities as a standout performer, attracting their highest share of net flows on record as investors increasingly turned to ETFs to access precious metals.
