Australian investors ploughed a record $15.8 billion into ASX exchange-traded funds (ETFs) during the September quarter.
Over the first three quarters this year, investors have put $36.8 billion into ETFs, which is more money than was invested over the whole of 2024.
Daniel Shrimski, Managing Director of Vanguard Investments Australia, said ASX ETFs are now a "mainstay" of Aussie portfolios.
Shrimski said:
The phenomenal growth being recorded is a reflection of the fact that millions of Australians are now using ETFs as the mainstay of their investment portfolio.
They are so easy to access and trade on the share market, they provide instant, broad investment diversification, and very importantly, they are generally very low-cost products.
There are more than 400 ASX ETFs trading on the market today.
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Aussies use ASX ETFs to access international shares
In the September quarter, about $7.2 billion of the $15.8 billion invested went into ASX ETFs providing exposure to international shares.
Within the Vanguard stable, the most popular ETF this year, by cash inflows, is the Vanguard MSCI Index International Shares ETF (ASX: VGS).
VGS has attracted $1.88 billion in new cash inflows this year.
VGS has $13.86 billion in funds under management as of 30 October, according to ASX data.
The VGS ETF tracks the MSCI World ex-Australia (with net dividends reinvested) in Australian dollars Index.
ASX VGS gives investors wide geographical diversification through its exposure to about 1,300 international shares listed in 23 nations.
US shares dominate the portfolio at 74%, followed by Japan 6%, Canada 3%, and the UK 3%.
The ASX VGS is focused on large-cap shares at 81% of the portfolio. The ETF's top holdings are Nvidia, Apple, and Microsoft.
What about ASX stocks?
In the September quarter, $3 billion of cash inflows went into exchange-traded funds providing exposure to ASX shares.
The most popular Vanguard ETF for Australian equities in 2025 so far is Vanguard Australian Shares Index ETF (ASX: VAS).
Vanguard said the VAS ETF has attracted $2.54 billion in new cash inflows this year.
VAS is the largest ASX ETF on the market with $22.68 billion in funds under management as of 30 October.
VAS ETF tracks the S&P/ASX 300 Index (ASX: XKO), which represents the 300 biggest listed companies by market capitalisation.
Its top holdings are Commonwealth Bank of Australia Ltd (ASX: CBA), BHP Group Ltd (ASX: BHP), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ), and Wesfarmers Ltd (ASX: WES).
