The ETF industry had a record $299.4 billion in funds under management as of August 31, according to reports by issuers VanEck and Betashares issued on Tuesday and Wednesday.
The industry saw $4.9 billion in inflows during August, the second highest level on record, just behind the $5.8 billion in inflows in July.
Over the past 12 months the Australian ETF industry has grown an impressive 36 per cent, or $79.2 billion.Â
ETFs are securities that trade like shares on stock markets such as the ASX, offering a simple way to gain exposure to a basket of investments - everything from stocks and bonds to cryptocurrencies and precious metals.
VanEck's Gold Miners ETF was the strongest performer in August with a 19.7 per cnet rise, followed close behind by the Betashares Gold Miners Currency Hedged ETF.
"Gold miners were the strongest performers in August, led by solid operational results and sustained demand for gold," said Arian Neiron, chief executive and managing director of VanEck Asia Pacific.
"Despite this strength, we believe the sector still offers meaningful upside potential."
Gold miners have been trading at "compelling valuations" for years, so it's pleasing to see investors now recognising that opportunity, he said.
Chinese equities and IT names also had a strong month, Mr Neiron added.
Betashares said six new ETFs were launched in August, taking the total to 436 exchange-traded products on the ASX and CBOE.
Vanguard's Australian Shares Index ETF remains the biggest product by market capitalisation at $22.2 billion, followed by Vanguard's MSCI Index ETF ($12.7 billion) and iShare's S&P 500 ($11.9 billion).
Vanguard had a total of $83.2 billion in assets under management in Australia as of August 31, for 27.8 per cent of the market, according to Betashares, whose report listed it in second place with $56.2 billion.
VanEck is forecasting the Australian ETF industry to reach $400 billion in assets under management by the end of 2026.
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