ETF’s vs Companies:
Which has dominated the ASX New
Listings Over the Past 5 Years?
Why We’re Seeing Fewer ASX Companies But More ETFs
Companies are disappearing from the ASX, here is why:
- Too Expensive to Stay Listed
Small companies are getting crushed by ASX fees and compliance costs. Many are going private instead of dealing with the expense. - M&A Feeding Frenzy
Bigger companies keep buying smaller ones, naturally reducing the total count on the ASX.
- IPO Market Dried Up
After the 2021 IPO party ended, market volatility and higher rates killed new listings. Companies are waiting it out. - Private Money is Easier
Why go public when private equity and venture capital offer big funding without the public market hassles?
Here is why ETFs are taking over:
- Simple Investing Wins
Investors want the whole market without the stress of picking individual stocks. ETFs deliver investing on autopilot. - SMSFs Gone Wild
Self-managed super funds love ETFs as easy portfolio building blocks without needing stock-picking skills.
- ETF for Everything
Green energy, tech, water, crypto – there’s an ETF for every investment theme imaginable. - Less Red Tape
ETF listings are way easier than company IPOs. Less paperwork, fewer hoops, more predictable outcomes. - Global Trend
The world’s moving from stock picking to passive ETF investing. Australia’s just catching up.
In the last five years: New company listing down 10%, new ETF listings up 74%. The market’s telling us exactly what it wants.
The Bottom Line
- Fewer companies because being public is expensive, complicated, and everyone’s getting bought out
- More ETFs because investors want easy, cheap, diversified investing
All values in this article are based on the 30th of June 2025
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