Updated
Updated · JP Morgan · Jun 23
Australia ETF Market Hits Record A$324 Billion in 2025 as Active Funds Drive APAC Lead
Updated
Updated · JP Morgan · Jun 23

Australia ETF Market Hits Record A$324 Billion in 2025 as Active Funds Drive APAC Lead

1 articles · Updated · JP Morgan · Jun 23

Summary

  • A$324 billion in assets left Australia’s ETF market at a record high at end-2025, up 43.2% year over year and well ahead of prior forecasts.
  • Investor demand was fueled by regulatory innovation, rising retail participation and self-managed super funds, with about 315,000 SMSFs now holding at least one ETF and ETF allocations reaching a record 12%.
  • Active ETFs added a major growth engine even as passive funds still dominate, and Australia accounted for more than 57% of APAC active ETF assets in 2025.
  • Australia remains smaller than China’s $861.2 billion and Japan’s $712.5 billion ETF markets, but it is in a tight race with Taiwan and South Korea for APAC’s No. 3 spot.
  • J.P. Morgan said clearer product labeling, semi-transparent structures and other rule changes have built a mature ecosystem, though intensifying regional competition and possible market saturation could test the next phase of growth.

Insights

Active ETFs now drive Australia's record growth, but are investors buying complex 'black box' strategies that obscure significant market risks?
As US giants adopt Australia’s ETF model, can its market maintain its edge against Asia’s tech-fueled competitors like South Korea?