ETF investors inject $5b in December, smash yearly inflow records

Yasmine Raso

Senior Journalist, Financial Newswire

14 January 2026

The Australian exchange traded fund (ETF) market has capped off another year characterised by record-breaking growth dominated by precious metals, with approximately $5.3 billion poured into products in the month of December.

According to the Global X ETF Market Scoop, net inflows totalled $53.3 billion over the year, exceeding the previous record of $31 billion in 2024 and recording 34.1 per cent in year-on-year growth, driven by a combination of positive market movements and more funds being repackaged by managers into active ETFs.

In terms of yearly returns the top performing ETFs were precious metals-related, including the Betashares Global Gold Miners Currency Hedged ETF (148.8 per cent), VanEck Gold Miners ETF (138.7 per cent), Global X Physical Silver Structured (130.1 per cent), Global X Physical Platinum Structured (104.9 per cent) and Betashares Energy Transition Metals ETF (96.3 per cent).

“December was dominated by a powerful surge across precious metals, capping off a year where commodities emerged as the standout investment theme of 2025. Gold, silver, platinum and palladium all rallied sharply in the final month, supported by tight supply conditions, resilient central bank demand and growing expectations of easier monetary policy in 2026,” the analysis said.

“Silver, Platinum and palladium rebounded strongly as investors rotated back into supply-constrained metals leveraged to industrial recovery. Silver led the pack, surging to an intramonth all-time high of US$84 per ounce before prices quickly corrected and closed out the year at US$72 per ounce.

“The rally was driven by a confluence of tightening margin requirements, China’s upcoming export restrictions and robust industrial demand from solar panels, electronics and advanced manufacturing. Copper miners were another standout as investors increasingly focused on copper’s critical role in electrification and AI, with rapid data-centre buildouts, supply constraints and rising M&A activity helping push copper to a fresh record above US$12,000 per tonne in December to close the year at US$12,423 per tonne.”

The ETFs found at the bottom in terms of performance were concentrated in the US equities and cryptocurrency spaces, reflecting volatile market conditions seen throughout the year: Betashares US Equities Strong Bear Currency Hedged Complex ETF (-36.9 per cent), Global X Ultra Short Nasdaq 100 Complex ETF (-33.4 per cent), Global X 21Shares Ethereum ETF (-19.2 per cent), and Monochrome Ethereum ETF (-17.7 per cent).

“December’s weakest performers were led by a continual decline in cryptocurrency markets, as momentum faded and risk appetite deteriorated into year-end. After a strong run earlier in 2025, major cryptocurrencies sold off to close the year lower, with Bitcoin ending around US$88,000 (down from its October peak near US$125,000) while Ethereum finished near US$3,000, well below its August high of US$4,850.

“Broader risk-off sentiment and renewed scrutiny of crypto intermediaries weighed on markets, while ETF flows turned choppy as investors rotated toward defensive assets. Bitcoin and Ethereum both experienced heightened volatility, with sharp intramonth drawdowns exposing the market’s sensitivity to liquidity and positioning.

“Smaller tokens and high-beta crypto equities fared worse, as miners and exchanges came under pressure from rising costs, margin compression and falling transaction volumes. Gaming and eSports stocks also lagged, slipping on weaker consumer spending trends, declining in-app purchases, slowing engagement growth and ongoing profitability concerns amid rising input component costs across the sector.”

International equities and fixed income ETFs retained their top spots in term of investor appetite throughout the year, recording $7.3 billion and a combined $4.5 billion for Australian and global fixed income, respectively.

“ETFs claimed the investment trifecta in 2025, setting new records for fund launches, investor inflows and trading activity as ETF adoption across Australia continued to accelerate. The industry launched 72 new ETFs during the year, surpassing the previous record of 65 and underscoring the pace of innovation and demand for more targeted investment solutions.

“Active ETFs led the wave of new product launches in 2025, making up 57% of all launches. Innovation was broad-based, spanning fixed income with Australia’s first fixed-maturity corporate bond ETFs, thematics such as AI infrastructure and Chinese technology, smart beta strategies targeting factors like growth and growth at a reasonable price (GARP), a new currency-hedged gold ETF, and simple low-cost vanilla exposures to markets such as Australia and Japan.

“Trading activity also surged, with total ETF turnover reaching $199 billion in 2025, up from $142 billion in 2024, while the number of trades climbed to 16.7 million, compared with 10.8 million last year.

“2025 also saw an exceptional year for ETF performance, with 92% of Australian-listed ETFs delivering positive returns, marking the highest proportion since 2019. Even though broad market ETFs underperformed certain niche themes and precious metals, strong performance was broadbased across asset classes and regions.

“These milestones highlight how ETFs have firmly established themselves as mainstream investment vehicles for Australian investors, offering transparency, liquidity and cost efficiency. With ETF penetration in Australia still well below international markets, we believe adoption has further room to grow as investors increasingly use ETFs as core portfolio building blocks across asset classes and
investment styles.”