Australia's exchange traded fund industry has surged past $300 billion in funds under management, a new record in a year full of them.

Australia's ETF industry had $309.3 billion in funds under management at the end of September, up $9.9 billion, or 3.3 per cent, from a month ago, Australian ETF issuer Betashares said in a report.

The Australian ETF industry has grown by $63 billion since the start of the year, thanks to investment growth and $37 billion in net inflows, Betashares said.

Betashares is now predicting the Australian industry could hit $320 billion by year-end and $500 billion by the end of 2028 - two years ahead of its previous forecast.

"We're witnessing a structural shift in how Australians invest, with ETFs increasingly becoming the vehicle of choice for building diver

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