Vanguard Australia has become the first ETF issuer in Australia to surpass $100 billion in assets under management (AUM), marking a milestone for both the firm and the broader exchange traded fund market.
The achievement comes as Vanguard celebrates 30 years in Australia and reflects what the firm described as strong and sustained demand from investors seeking low-cost, transparent and diversified investment options.
Managing director Daniel Shrimski said the milestone underscored the growing importance of ETFs in Australian portfolios.
“Reaching $100 billion in ETF assets is a landmark achievement. It highlights the growing role ETFs now play at the core of investor portfolios, and the trust that Australian investors have placed in us,” Shrimski said.
The milestone also highlights the rapid growth of the Australian ETF market, which has expanded significantly over the past decade as investors increasingly embrace passive investment strategies.
Vanguard currently manages the two largest ETFs in the Australian market by assets under management, with the Vanguard Australian Shares Index ETF (VAS) holding $25.4 billion and the Vanguard MSCI Index International Shares ETF (VGS) holding $16.4 billion.
The firm also has two funds ranked within the market’s top 10 ETFs, with VHY at $7.5 billion and VGAD at $7.2 billion.
Shrimski said the growth reflected the enduring appeal of index investing.
“Investing in individual stocks is inherently challenging, with the majority of single stocks underperforming the broader market over time.”
“Index investing offers a simple and effective solution. As Vanguard founder Jack Bogle famously said, “don’t look for the needle in the haystack, just buy the haystack,” Shrimski says.
According to Vanguard, the benefits of long-term investing remain evident. The firm noted that a $10,000 investment in Australian shares in 1995 would have grown to approximately $143,000 by 2025 through the power of compounding.
The company also pointed to the impact of fees on investment outcomes, arguing that the lower costs typically associated with index funds can help investors retain a greater share of market returns over time.
Vanguard analysis further found that identifying active managers capable of consistently outperforming the S&P/ASX 300 remains difficult, with excess returns often insufficient to offset higher management fees.
Looking ahead, Shrimski said the firm remains focused on expanding its offering and supporting investor outcomes as the ETF sector continues to grow.
“This milestone is not just about scale. It reflects our commitment to providing investors with high quality, cost effective investment solutions,” Shrimski said.
“We see significant opportunity ahead as ETF growth continues to accelerate across the Australian market for everyday Australian investors.”
