Record Growth in Asia Pacific ETF Industry: Insights from ETFGI
The Asia Pacific ETF industry (excluding Japan) has reached a remarkable milestone, with assets under management (AUM) soaring to $1.37 trillion by the end of June 2025. This figure marks a significant leap from the previous record of $1.30 trillion, set just a month earlier. The latest report from ETFGI, a leading independent research and consultancy firm, highlights the robust growth and increasing investor interest in this dynamic market.
Strong Year-to-Date Performance
The first half of 2025 has been particularly fruitful for the ETF sector in Asia Pacific. Year-to-date, assets have grown by 18.7%, climbing from $1.15 trillion at the end of 2024. This growth trajectory underscores the increasing appetite for ETFs among both retail and institutional investors, driven by a combination of favorable market conditions and the diversification benefits that ETFs offer.
Consistent Inflows
June 2025 alone saw net inflows of $17.18 billion, marking the fourth consecutive month of positive flows. Cumulatively, the year-to-date net inflows have reached $114.29 billion, making it the second-highest total on record. This figure trails only behind the $142.17 billion peak achieved in 2024, indicating sustained investor confidence in the ETF market.
Sector Performance Highlights
The performance of various sectors within the ETF landscape has also been noteworthy. The S&P 500 index rose by 5.09% in June, contributing to a 6.20% gain for the first half of the year. Developed markets (excluding the U.S.) increased by 3.24% in June, with a year-to-date rise of 20.29%. Emerging markets also showed resilience, gaining 4.80% in June and 11.41% year-to-date.
Top Performers
Among the standout performers in June were:
- Korea: +16.12%
- Israel: +11.60%
- Taiwan: +8.53%
- Turkey: +8.49%
These figures reflect the diverse opportunities available within the Asia Pacific region, appealing to a wide range of investors.
ETF Landscape Overview
As of the end of June 2025, the Asia Pacific ETF industry comprised 3,949 ETFs with 4,162 listings across 21 exchanges in 15 countries. This diverse landscape is supported by 281 providers, showcasing the competitive nature of the market.
Inflows by Asset Class
In June, the inflows were predominantly driven by fixed income ETFs, which attracted $13.09 billion. This brought the year-to-date net inflows for fixed income ETFs to $30.05 billion, slightly lower than the $30.85 billion recorded in 2024. Equity ETFs gathered $2.84 billion in June, totaling $56.66 billion year-to-date, while commodities ETFs reported net inflows of $0.99 billion.
Interestingly, active ETFs experienced net outflows of $0.14 billion in June, although they still managed to gather $12.81 billion year-to-date, surpassing the $5.34 billion in net inflows recorded in 2024.
Leading ETFs by Net New Assets
The top 20 ETFs by net new assets collectively gathered $20.71 billion in June. The ChinaAMC SSE Market-Making Corporate Bond ETF (511200 CH) led the pack with $1.99 billion in individual net inflows, highlighting the growing interest in fixed income products.
Notable ETFs
Here are some of the top ETFs by net new assets in June 2025:
| Name | Ticker | Assets ($ Mn) | NNA YTD ($ Mn) | NNA June ($ Mn) |
|---|---|---|---|---|
| ChinaAMC SSE Market-Making Corporate Bond ETF | 511200 CH | 3,016.81 | 2,988.47 | 1,988.87 |
| Huatai-PineBridge CSI A500 ETF | 563360 CH | 3,160.23 | 723.53 | 1,889.22 |
| Yuanta/P-shares Taiwan Top 50 ETF | 0050 TT | 22,196.64 | 6,459.36 | 1,886.71 |
These figures illustrate the competitive landscape and the shifting preferences of investors within the Asia Pacific ETF market.
ETPs and Their Performance
The top 10 exchange-traded products (ETPs) by net new assets collectively gathered $271.06 million during June. The Shinhan Securities Shinhan S&P500 VIX S/T Futures ETN E 95 (500095 KS) led with $84.24 million in individual net inflows.
Top ETPs
Here are the top ETPs by net inflows in June 2025:
| Name | Ticker | Assets ($ Mn) | NNA YTD ($ Mn) | NNA June ($ Mn) |
|---|---|---|---|---|
| Shinhan Securities Shinhan S&P500 VIX S/T Futures ETN E 95 | 500095 KS | 84.24 | 84.24 | 84.24 |
| Shinhan Securities Shinhan Inverse 2X Natural Gas Futures ETN B 96 | 500096 KS | 66.21 | 66.21 | 66.21 |
The performance of these ETPs reflects the growing interest in alternative investment strategies among investors in the region.
Investor Trends
The data indicates a clear trend: investors are increasingly favoring fixed income ETFs and ETPs. This shift may be attributed to a combination of market volatility and a search for stability in uncertain economic conditions. The growing diversity of products available in the Asia Pacific ETF market allows investors to tailor their portfolios to meet specific risk and return objectives.
The ongoing developments in the Asia Pacific ETF industry are a testament to its resilience and adaptability, positioning it as a key player in the global investment landscape.
