Why today is a monumental day for ASX ETFs

This Wednesday is one for the ETF record books.

| More on:
A man sits thoughtfully on the couch with a laptop on his lap.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's been a wonderful day for the Australian stock market this Wednesday. But also for ASX exchange-traded funds (ETFs)

As it currently stands, the S&P/ASX 200 Index (ASX: XJO) has gained a healthy 0.47% so far this session, pushing the index back up over 8,520 points. We've also seen new record highs from stocks like Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), and Computershare Ltd (ASX: CPU).

But let's talk about why ASX ETFs are having a wonderful day as well.

ETF sector hits major milestone

It's got nothing to do with stock prices (although many ETFs are charging higher today). Rather, the ETF sector has reportedly just hit a major milestone.

According to reporting in the Australian Financial Review (AFR), the value of assets under management in Australian exchange-traded funds has just surpassed $250 billion for the first time ever to hit $257.4 billion at the end of January. According to ETF provider BetaShares, ASX ETFs have been "boosted by strong net inflows in the year to date".

The numbers are rather staggering. According to the report, investors poured in a whopping $4.6 billion into ETFs over January, up from just $600 million in January 2024.

ETFs that track ASX and international shares have been the largest beneficiaries, accounting for $3.1 billion of that $4.6 billion.

ETFs record rises in funds under management in two ways: investor inflows and rising stock markets.

As such, it certainly wouldn't have hurt that the ASX 200 Index added a healthy 4.6% in January, while the American S&P 500 Index (SP: .INX) rose by 2.7% over the same period.

This milestone is undoubtedly good news for the largest and most popular ASX funds, including the Vanguard Australian Shares Index ETF (ASX: VAS), the iShares S&P 500 ETF (ASX: IVV), the Vanguard MSCI Index International Shares ETF (ASX: VGS), and the VanEck MSCI International Quality ETF (ASX: QUAL).

In other ASX ETF news

We've also got some other ASX ETF news to cover this Wednesday, adding to the theme of the day.

Firstly, a new fund has just debuted on the ASX.

The Global X Russell 200 ETF (ASX: RSSL) tracks 2,000 small-cap US stocks and has just floated on the ASX, currently going for $9.97 per unit. This is exciting, as, until now, this has been a relatively underserviced corner of the US markets when it comes to the ASX.

Secondly, Global X has also just reduced the fee on the Global X US 100 ETF (ASX: U100). This fund offers investors exposure to 100 of the largest non-financial shares listed on the US markets.

U100 charged a fee of 0.24% per annum until today. However, effective this Wednesday, this fee has dropped to 0.18%.

So a big day for ASX exchange-traded funds all around. Let's see how long it takes to get to $300 billion in assets under management.

Should you invest $1,000 in Graincorp Limited right now?

Before you buy Graincorp Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Graincorp Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

A young man punches the air in delight as he reacts to great news on his mobile phone.
ETFs

5 excellent ASX ETFs to buy now

Here are five funds that could be top picks for Aussie investors this month.

Read more »

Business people discussing project on digital tablet.
ETFs

Should you invest $3,000 into these top ASX ETFs this month?

Is now a good time to buy these funds? Let's find out.

Read more »

ETF spelt out with a piggybank.
ETFs

Is it too late to buy the VTS ETF and MOAT ETF after the rebound?

Was the best time to buy these ETFs last month?

Read more »

Hologram of a man next to a human robot, symbolising artificial intelligence.
ETFs

AI, cybersecurity, and defence: 3 megatrend ASX ETFs to watch now

Want to invest in some of the most exciting megatrends? Check out these funds.

Read more »

A business woman flexes her muscles overlooking a city scape below.
ETFs

3 ASX ETFs that could be strong buys in May

Looking for some investment ideas? Here are three to consider in May.

Read more »

Army man and woman on digital devices.
ETFs

3 reasons why Vaneck Global Defence ETF could beat the ASX 200 over the next year

Let's take a look at why this fund could be a top pick for investors.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
ETFs

5 ASX ETFs to buy and hold until 2035

Check out these funds if you are looking to make buy and hold investments.

Read more »

Excited couple celebrating success while looking at smartphone.
ETFs

3 strong ASX ETFs to buy in May

These funds could be top picks for Aussie investors next month. Let's see why.

Read more »