Like MAs, ETPs maintain strong growth

Mike Taylor

Managing Editor and Publisher

9 April 2026

The correlation in growth between managed accounts and exchange-traded products continues to manifest with new research pointing to a 60% year on year increase in the Australian Exchange Traded Products (ETPs) market.

The Rainmaker research found that Australian ETPs delivered another year of strong growth in 2025, generating $51.9 billion in positive net flows, with the total market size reaching $279.6 billion.

The Rainmaker commentary said the flows had reinforced the sector’s position as a core component of Australian investor portfolios.

It said index ETPs remained the primary driver, attracting $41.8 billion in flows, while smart beta products collected $5.3 billion ahead of active ETPs which recorded $4.8 billion, with flows concentrated among a small number of strategies.

The Rainmaker analysis said core equity funds continued to dominate investor demand with major broad-market products such as Vanguard Australian Shares Index ETF, Vanguard MSCI Index International Shares ETF, and Betashares Australia 200 ETP reflecting reliance on diversified building block solutions.

It said a consistent theme across the market was cost sensitivity with lower‑fee products again attracting the majority of new investment, indicating that value‑conscious portfolio construction continues to shape investor behaviour.

Fixed income ETPs continued to strengthen their role within portfolios in 2025.

Rainmaker executive director of research, David Gallagher said the data highlighted a disciplined approach among investors.

“The strong preference for simple, diversified and cost‑effective products shows how firmly long‑term thinking has taken hold in the Australian market,” Gallagher said.

“Investors are prioritising clarity and consistency in their portfolios, and the concentration of flows into established, broad‑market strategies underscores that shift.”

“Interestingly, no performance chasing was observed, with no flow patterns correlated to prior-year returns.”

Rainmaker’s analysis indicates that the ETP market is not only expanding in size but also in maturity, with stable inflows across segments demonstrating increasing investor confidence in the structure and transparency of ETPs.