Exchange Traded Funds or ETFs are now a BIG thing in Australia. The rise of ASX ETFs is making investing easier and more accessible to more Australians.
Have you ever wondered who creates and sell ETFs in Australia?
Below, we’ve put together a list of the 6 biggest ETF providers in Australia in 2022.
6 biggest ETF providers in Australia
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Vanguard Australia is one of Australia’s largest ETF providers, both by the number of ETFs and total money invested (called ‘funds under management’ or FUM). Part of the global Vanguard Group Inc, Vanguard’s history dates back to the mid-1970s.
Globally, Vanguard has around $10 trillion invested in its ETFs and unlisted index funds. It also offers rules-based investment strategies — Vanguard calls them ‘active strategies’ but we categorise them as rules-based.
One of the things that makes Vanguard unique in the finance industry globally is that it is investor-owned (“mutual”). The US-based Vanguard Group Inc is, therefore, funded by the very investors it serves.
We believe this unique ownership structure is one of the key reasons why Vanguard has become the global leader in low-cost ETFs and index funds.
In 2021, Vanguard Australia launched the Vanguard Personal Investor platform, which allows investors to access auto-invest features for Vanguard products.
One of the popular ETFs issued by Vanguard Australia is the Vanguard Diversified High Growth Index ETF (ASX: VDHG).
iShares by BlackRock
Blackrock is the company responsible for the huge issuer of ETFs called iShares. It is one of Australia’s and the world’s largest ETF issuers, both in terms of the number of ETFs issued and total FUM invested.
iShares have issued ETFs in Australia for more than a decade and currently operates over 35 ETFs listed on the ASX spanning local and global shares, local and global bonds and cash. iShares also offers rules-based ETFs.
One of the popular ETFs issued by Blackrock in Australia is iShares S&P 500 ETF (ASX: IVV).
SPDR by State Street Global Advisers
State Street Global Advisors (State Street) is one of Australia’s and the world’s largest ETF issuers, both by the total number of ETFs and FUM. It is the name behind SPDR ETFs (“spider”).
Globally, State Street has more than $4 trillion in assets under management. State Street first opened its Australian offices in 1986 and employs 4,000 people throughout the Asia Pacific region.
State Street created the first ETF back in 1993. Today, the SPDR ETF name is known for index fund ETFs, rule-based ETFs and research. In Australia, SPDR ETFs are available in the Australian Shares, Global Shares and Australian Bonds sectors.
One of the popular ETFs issued by State Street in Australia is the SPDR S&P/ASX 200 Fund (ASX: STW).
BetaShares is one of Australia’s largest ETF issuers, by number of ETFs issued on the ASX. BetaShares has over $22 billion of assets under management.
BetaShares launched its first ETF in 2010, but has grown its ETF count rapidly and has over 100 ETFs in the market today. BetaShares has issued index fund ETFs, rules-based ETFs and actively managed funds in an ETF wrapper.
One of the popular ETFs issued by BetaShares is the BetaShares Australian High Interest Cash ETF (ASX: AAA).
ETF Securities is Australia’s second-oldest ETF business. Founded by Graham Tuckwell in 2003, ETF Securities has grown to become one of the leaders in the Australian ETF market.
ETF Securities launched the first gold ETF in Australia back in 2003. Ten years later, in 2013, ETF Securities sold its European and US businesses to WisdomTree, making its founder Graham Tuckwell one of the richest people in Australia.
ETF Securities has over $3 billion in assets under management. In 2022, ETF Securities was acquired by Mirae Asset Global Investments via its ETF brand, Global X ETFs.
One of the popular ETFs issued by ETF Securities is ETFS Physical Gold (ASX: GOLD).
VanEck was founded in 1955 as a specialist global investing business. Despite only launching in Australia in 2013 VanEck has grown to become one of the largest ETF issuers, both by the total number of ETFs issued and FUM.
Around a decade after being founded by John C. van Eck Jr in New York, VanEck launched the first gold fund. Today, VanEck offers ETFs in the Australian Shares, Global Shares, Australian Bonds and Commodities sectors.
One of the popular ETFs issued by VanEck Australia is the VanEck Morningstar Wide Moat ETF (ASX: MOAT).
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