Vanguard Australia becomes first issuer to reach $100 billion in ETF assets

By Vanguard

ETFs

Markets and economy

 

ETF growth in Australia surges as investors demand low-cost, diversified investments

Vanguard Australia has become the first Australian ETF issuer to reach $100 billion in assets under management (AUM), marking a significant milestone for the Australian investment industry.

The new high marks the rapid rise of exchange traded funds in Australia and reflects strong and sustained investor demand for low cost, transparent and diversified investments, and comes at the same time Vanguard is celebrating 30 years in Australia.

Daniel Shrimski, Managing Director, Vanguard Australia, said the milestone represents a defining moment in the evolution of the Australian ETF market.

Reaching $100 billion in ETF assets is a landmark achievement. It highlights the growing role ETFs now play at the core of investor portfolios, and the trust that Australian investors have placed in us.

— Daniel Shrimski,

Managing Director, Vanguard Australia

Vanguard maintains the two largest ETFs in the Australian market as measured by AUM, with VAS at $25.4 billion and VGS at $16.4 billion. This leadership extends across the top 10, with VHY ranked #7 at $7.5 billion and VGAD ranked #8 at $7.2 billion.

The milestone also highlights the enduring value of index investing for Australian investors. Index funds have transformed investing by making broad diversification accessible at very low cost.

“Investing in individual stocks is inherently challenging, with the majority of single stocks underperforming the broader market over time.”

“Index investing offers a simple and effective solution. As Vanguard founder Jack Bogle famously said, “don’t look for the needle in the haystack, just buy the haystack,” Mr Shrimski says.

Thanks to the power of compounding, a $10,000 investment in Australian shares in 1995 would have grown to approximately $143,000 by 2025, illustrating the long-term wealth building potential of staying invested in the market.*

Investment costs play a critical role in outcomes. With minimal overhead and lower trading activity, index funds are typically cheaper than actively managed funds, meaning more of the return stays where it belongs, with investors.

Vanguard Australia analysis shows that the odds of finding an active fund that outperforms the ASX 300 is difficult for investors.

While some active managers do generate above index returns, it is often not enough to compensate for the fees charged.

Daniel Shrimski says Vanguard Australia remains focused on innovation and delivering strong investor outcomes.

“This milestone is not just about scale. It reflects our commitment to providing investors with high quality, cost effective investment solutions,” Mr Shrimski said.

“We see significant opportunity ahead as ETF growth continues to accelerate across the Australian market for everyday Australian investors.”

 

^{*Returns taken from the Vanguard Index Chart. Per annum total returns from 1 July 1995 to 30 June 2025. Australian Shares = S&P/ASX All Ordinaries Total Return Index. Excluding fees and costs.}