Dedicated Australian bank ETFs remain relatively small compared with the enormous indirect exposure sitting inside broad-market index funds. The largest pure-play is the VanEck Australian Banks ETF (MVB) at around A$314m, while broader financial-sector ETFs such as Betashares QFN and State Street OZF are also relatively modest in size. In other words, the biggest source of passive demand for Australian banks isn’t bank ETFs at all; it’s the billions of dollars automatically flowing through broad-market ASX index funds.
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ASX Bank Equity ETFs by FUM – Source: Bloomberg
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ASX Bank Equity ETFs by FUM – Source: Bloomberg
