Betashares (ASX:BBUS), one of Australia's largest providers of exchange-traded funds (ETFs), is preparing for international expansion after a standout year in 2024 in which it recorded inflows of A$16 billion, bringing total funds under management to A$46 billion.
Co-founder Alex Vynokur attributes the company's success to a decade-long focus on building its ETF offerings.
“We are now a steward of significant capital on behalf of more than 1 million Australian investors and over two-thirds of financial advisors,” said Vynokur.
Betashares now accounts for one-third of every dollar invested in the Australian ETF market.
ETFs are cost-effective investment vehicles that pool securities into a single tradable fund, offering exposure to thousands of diversified assets. They continue to grow in popularity globally, attracting more than US$1 trillion in 2024, with total assets reaching an estimated US$14 trillion.
Betashares has also drawn significant international investment. Singapore’s sovereign wealth fund, Temasek, acquired a minority stake for A$300 million earlier this year, valuing the company at several billion dollars.
The proceeds are expected to support product expansion and entry into new markets. Recent initiatives include the launch of the Betashares Direct investment platform and the acquisition of a superannuation business from Bendigo and Adelaide Bank (ASX:BEN).
While Asia is a potential growth region, Vynokur says expansion will be deliberate.
“We’re definitely, very cautiously, studying opportunities outside of Australia … and that’s going to form part of our longer-term growth,” he explained.
The company sees continued opportunity within Australia, particularly among younger investors seeking alternatives to property investment.
Vynokur added, “Being smart with money outside of property is absolutely crucial. We have a real role to play in that.”