A new report from Betashares has reinforced the continued push from Aussie investors into ASX ETFs.
The Australian ETF industry set new records in August, attracting $7 billion in net inflows and taking total assets to $382 billion.
International equities led the way, while fixed income remained in focus as yields rose and CGT changes reshaped the investment landscape.
Image source: Getty Images
August overview
According to the Betashares Australian ETF Review: August 2026, The Australian ETF industry received an unprecedented $7 billion in net inflows.
This was amid an ongoing decline in property values and conversation about reforms to CGT arrangements.
This was above July's then record of $6.83 billion, marking back-to-back months above $6.5 billion for the first time in the industry's history.
The number of ASX ETFs also passed 500 for the first time.
International Equities broke another monthly record in August at $3.8 billion, surpassing July's previous high of $3.56 billion.
As a result of recent weakness in Australian equities, investors are rethinking their long-term investment plans with international equity ETFs emerging as a clear beneficiary.
The category has now set a new all-time monthly record in consecutive months, while Emerging Market ETFs also saw record inflows this month.
Earnings season takeaways
August saw the majority of US and Australian listed companies report in the Q2 and H2 seasons, respectively.
In the US 86% of companies exceeded EPS estimates, the highest % since Q2 2021, with the broader market achieving an astonishing 50% year-over-year earnings growth rate.
This outsized growth was attributable in part to unrealised investment gains reported in earnings from big tech's unlisted AI investments, such as in Anthropic and OpenAI.
Even excluding these windfalls operating EPS grew at 26%.
The brightest sign of AI driven profitability gains came through reported 17% profit margins, the highest in more than 15 years.
These developments continue to support the growth of large cap US technology companies.
Within Australia there was also reason to rejoice with the ASX 200 achieving its first year of earnings growth since FY22.
According to Tom Wickenden, Investment Strategist at Betashares, a majority of this was driven by outsized materials sector earnings which reported 36% growth.
Alarmingly the weight of recent budget changes, rate hikes, and related poor consumer confidence saw next years earnings expectations being cut even as companies met expectations this season.
August winners
In the month of August, the best performing ASX ETFs were:
- BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS) – rose 31%
- Betashares Ethereum ETF (ASX: QETH) – rose 30%
- Global X Silver Miners ETF (ASX: SLVM) – rose 30%.
In terms of top inflows:
- Vanguard MSCI Index International Shares ETF (ASX: VGS)
- BetaShares Australia 200 ETF (ASX: A200)
- Betashares Funds – Betashares Global Shares ETF (ASX: BGBL).
Another interesting note from the report was that copper has now overtaken iron ore in Australian mining earnings.
Copper is one of the most important materials in building global AI infrastructure and for the green energy transition.
Data centres, power distribution, wiring. All of it uses copper at an extraordinary scale. So, while Australian investors cannot buy AI companies directly through a local index, Australia's mining sector is now one way to benefit from these buildouts.
