Australians continue to invest into ETFs as Vanguard sees record ETF flows for start of 2026
By Vanguard
ETFs
Australians invest record funds into ETFs as Vanguard logs record flows to start 2026
- Vanguard Australia records its largest monthly exchange-traded fund (ETF) cashflow on record in March with $2.62 billion in inflows.
- During March Vanguard Australia launched five new ETFs tracking the S&P 500, global technology and international high yield.
- Quarterly ETF flow in Q1 2026 has the Australian ETF industry on track to surpass $60 billion in investor flow in 2026.
Australians invested a record $15.2 billion into ASX-listed exchange-traded funds in the first quarter of 2026, continuing to demonstrate strength in ETF investor demand as seen in the second half of 2025. Vanguard accounted for $5.47 billion in ETF inflows over the quarter.
For Vanguard Australia, March was a record month for ETF cash flows with $2.62 billion net inflows. This trend was also reflected in the wider Australian ETF industry receiving $5.73 billion of net inflows for March.
Commenting on the strong start to the year, Daniel Shrimski, Managing Director of Vanguard Australia said investors were continuing to use ETFs as a core portfolio strategy during periods of uncertainty.
“This year has started strong for Australians investing in ETFs,” Mr Shrimski said.
“In periods of market volatility, we see investors turn to ETFs due to benefits such as transparency and liquidity. In particular, demand for equity ETFs has grown, with investors favouring broad, diversified core exposures.”
The Vanguard Australian Shares Index ETF (VAS) also remained Australia’s largest ETF product, attracting $880 million of inflows in Q1 2026, lifting VAS’s total assets under management (AUM) to $23.31 billion as of 31 March.
“We’re also seeing continued confidence in Australian equities,” Mr Shrimski said. “VAS remains a core holding for many investors, reflecting its role as a long-term, diversified exposure to the Australian share market.” Vanguard MSCI Index International Shares ETF (VGS) remained Australia’s second-largest ETF product, with over $537 million of inflows in March.
International equity products continue to see the largest growth, climbing over 76% when looking at Q1 2025 to Q1 2026. Meanwhile Australian equities continue to hold strong with a 28% increase year on year.
During Q1 Vanguard Australia launched five new ETFs tracking the S&P 500, global technology and international high yield.
Mr Shrimski said, “In a highly competitive market Vanguard remains focused on advocating for investors and supporting their long‑term financial goals.”
“Launching five new ETFs in a single month was a major milestone for us,” Mr Shrimski said.
“These products were shaped directly by client feedback, and demonstrate our commitment to giving investors the best chance for investment success.”
“That focus underpins our ETF offering, with products designed to meet a broad range of investment needs and distributed through the ASX as well as through advisers and external investing platforms.”
Australian 2025/26 quarter-by-quarter ETFs net cash flow by asset class
| Asset class | Total 2025 Cash Flow (A$m*) |
Q4 2025 Cash Flow (A$m)* |
Q3 2025 Cash Flow (A$m) |
Q2 2025 Cash Flow (A$m) |
Q1 2025 Cash Flow (A$m) |
Q1 2026 Cash Flow (A$m) |
| International equity | 19,941 | 5,276 | 7,188 | 3,573 | 3,904 | 6,941 |
| Australian equity | 13,304 | 3,952 | 3,070 | 3,129 | 3,153 | 4,055 |
| Australian fixed income | 8,388 | 3,088 | 2,412 | 1,483 | 1,405 | 2,081 |
| Commodity | 2,246 | 538 | 644 | 381 | 683 | 785 |
| International fixed income | 2,063 | 232 | 783 | 490 | 558 | -75 |
| Cash | 2,039 | 819 | 436 | -85 | 869 | 705 |
| Multi asset | 1,665 | 565 | 571 | 296 | 233 | 530 |
| Infrastructure | 815 | 156 | 279 | 255 | 125 | 97 |
| Australian property | 389 | 120 | 121 | 41 | 107 | 63 |
| International property | 817 | 220 | 201 | 262 | 134 | 24 |
| Currency | -29 | -2 | -9 | -22 | 4 | -2 |
| Digital currency | 282 | 76 | 104 | 56 | 46 | 45 |
| Total | 51,884 | 15,040 | 15,800 | 9,859 | 11,221 | 15,249 |
Sources: ASX and Vanguard data. *As at 31 March 2026. Figures rounded to the nearest whole number.
Top 5 Vanguard Australia ETFs by cash flow (2026)
| Product | ASX Code | Cash Flow (A$m) |
| Vanguard Australian Shares Index ETF | VAS | 1,397 |
| Vanguard MSCI Index International Shares ETF | VGS | 1,379 |
| Vanguard FTSE All-World ex-US ETF | VEU | 619 |
| Vanguard Australian Shares High Yield ETF | VHY | 407 |
| Vanguard MSCI Index International Shares (Hedged) ETF | VGAD | 297 |
Source: Vanguard. As at 31 March 2026. Figures rounded to the nearest whole number.
Important Information
Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer and the Operator of Vanguard Personal Investor. We have not taken your objectives, financial situation or needs into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your objectives, financial situation or needs, and the disclosure documents for Vanguard’s financial products before making any investment decision. Before you make any financial decision regarding Vanguard’s financial, products, you should seek professional advice from a suitably qualified adviser. A copy of the Target Market Determinations (TMD) for Vanguard’s financial products can be obtained at vanguard.com.au free of charge and include a description of who the financial product is appropriate for. You should refer to the relevant TMD before making any investment decisions. You can access our IDPS Guide, PDSs Prospectus and TMD at vanguard.com.au or by calling 1300 655 101.
Past performance information is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance.
London Stock Exchange Group companies include FTSE International Limited (“FTSE”), Frank Russell Company (“Russell”), MTS Next Limited (“MTS”), and FTSE TMX Global Debt Capital Markets Inc. (“FTSE TMX”). All rights reserved. “FTSE®”, “Russell®”, “MTS®”, “FTSE TMX®” and “FTSE Russell” and other service marks and trademarks related to the FTSE or Russell indexes are trademarks of the London Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX and Russell under license. All information is provided for information purposes only. No responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication. Neither the London Stock Exchange Group companies nor any of its licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put.
The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities. The prospectus or the Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with Vanguard and any related funds.
This publication was prepared in good faith and we accept no liability for any errors or omissions.