EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Recent Searches
The Asia-Pacific exchange-traded funds (ETF) market represents a substantial and rapidly growing segment within the global ETF landscape. As of June 2025, the region boasted US$1.99 trillion in assets under management (AUM)1, accounting for 11.86% of the worldwide ETF market. Over the past decade, the Asia-Pacific ETF market has demonstrated a remarkable average compound annual growth rate (CAGR) of 27.9%1, significantly outpacing the global average.
Japan stands as the largest ETF market in the Asia-Pacific region, while India has exhibited the highest growth rate. Equity ETFs are the dominant product type across most Asia-Pacific markets, with Taiwan being a notable exception, as most of its ETF assets are concentrated in fixed income. The Asia-Pacific ETF market is expected to maintain its robust growth trajectory, driven by increasing investor interest and the expansion of actively managed ETFs.
|
Market |
Approximate AUM (Q1 2025)2 |
Approximate CAGR (Past five years) |
Key characteristics |
Product innovation |
|---|---|---|---|---|
|
Japan |
US$578.8 billion |
8.9% |
Historically largest, more moderate recent growth, expected increase in retail participation |
Thematic ETFs, ESG ETFs |
|
Chinese mainland |
US$519.9 billion |
28.2% |
Fast growth, projected to be the largest in 2025, high liquidity |
Traditional broad market ETFs |
|
Taiwan |
US$198.5 billion |
27.5% |
One of the fastest-growing, strong retail investor participation |
Actively managed ETF |
|
Australia |
US$150.1 billion |
21.5% |
Mature and growing market |
Thematic ETFs, ESG ETFs |
|
South Korea |
US$127.8 billion |
23.2% |
Thriving active ETF market |
Options-based income ETFs |
|
India |
US$98.2 billion |
40.4% |
Highest growth rate in the past five years |
|
|
Hong Kong |
US$51.7 billion |
7.5% |
Resilient market with a diverse range of ETF products |
L&I ETF products on regional indices like HSI/Nikkei, virtual asset ETFs |
|
APAC (Total) |
US$1.74 trillion |
18% |
The substantial growth in the Asia-Pacific ETF market presents significant opportunities for new entrants. To capitalize on this potential, new entrants must build resilient operations and robust infrastructure to align with market momentum. Successfully navigating the complexities of the Asia Pacific market, with its varying regulatory environments and investor preferences, demands a strategic and technologically advanced approach to ensure operational efficiency, regulatory compliance, and ultimately, market competitiveness.
This piece recommends a framework outlining the essential components to consider when entering the diverse and dynamic Asia-Pacific ETF landscape. It highlights the key trends driving market growth, regulatory considerations that must be addressed and insights on operations and technology that can support a new issuer's entry into the region.