Exchange-traded funds in Australia recorded a sizeable growth in 2021, underpinned by their growing popularity from retail investors.
According to Morningstar’s ETF Investor Report – which tracks key trends in the market each quarter – assets surged 23.9% to $117 billion.
The strong domestic equity market (the Morningstar Australia Index posted gains of 18% for the year) was a sentiment booster as investors pumped in AUD20.8 billion into local equity ETFs, marking a 12.1% increase in net inflows relative to 2020.