Index-tracking ETFs are on track to expand by about 20% this year and that momentum is now feeding ambitious growth forecasts.
State Street, ranked alongside BlackRock and Vanguard as one of the world’s top three ETF providers, expects Australia’s ETF funds under management to hit $380 billion in 2026. That would be a jump from roughly $320 billion last year and a dramatic leap from just $71 billion in 2020.
The Boston-based group is also watching product numbers closely because more choice tends to attract more investors. According to State Street’s projections, the number of ETFs listed on the ASX is likely to pass 500 by the end of this year, compared with 470 in March.
That scale of expansion would represent a huge lift in options for local investors looking for low-cost exposure across markets and asset classes. Not long ago, choice was far more limited.
The ASX hosted only about 220 ETFs as recently as 2020 and a mere 19 back in December 2008. That history underlines how quickly the ETF ecosystem has deepened in under two decades and why large global issuers are paying close attention to Australia, which is one of the more dynamic ETF growth markets worldwide.
