ROOT
Aussies flock to ETFs for diversification
Hundreds of thousands more Australians are expected to invest in ETFs in the coming year.
Aussies flock to ETFs for diversification
Hundreds of thousands more Australians are expected to invest in ETFs in the coming year.
The local ETF industry is expected to surpass a milestone of two million investors within the next year, according to a new report.
The BetaShares/Investment Trends ETF Report found that the number of ETF investors in Australia had grown 33 per cent to 1.73 million over the past year and predicted an additional 275,000 Australians would invest in ETFs in 2022.
Growth is also forecast for existing ETF investors, with 1.46 million or 84 per cent reporting plans to increase their allocation to ETFs during the next year, the highest rate recorded since 2013.
“A growing number of investors continue to be drawn to ETFs as a way of building their wealth and achieving their financial goals,” said BetaShares chief executive Alex Vynokur.
“We’re also seeing that ETFs have reached mainstream adoption in Australia, with a notable rise in younger and increasingly female investors, who see value in a simple-to-access, transparent and cost-effective way of building their investment portfolios.”
The proportion of Australians using ETFs as the core of their portfolio surged from 4 per cent in 2019 to 27 per cent in 2021, with BetaShares highlighting increased usage among experienced investors, including individuals with an SMSF.
Portfolio diversification was identified as the main reason behind investors choosing to invest in ETFs.
For newer ETF investors who have remained invested for less than 12 months, avoiding individual stock exposure risk and saving time were among the top reasons for investing.
Meanwhile, convenient access to overseas markets and liquidity benefits were among the biggest benefits identified by long-term ETF investors of five years or more.
“Australian investors are continuing to increasingly recognise ETFs as a convenient and cost-effective way to diversify their portfolios away from domestic equities,” said Mr Vynokur.
According to BetaShares, half of ETF investors said they intended to hold their ETF investments for more than 10 years.
The firm recently reported that the market cap of Australian ETFs reached an all-time high in November with the second-highest level of monthly trading value ever recorded.
“2022 is shaping up for another strong year of growth, and I believe the industry is on track to hit $180 billion in FUM by the end of next year, up from approximately $130 billion today,” said Mr Vynokur.
RELATED ARTICLES
Invest
State Street Investment Management holds steady on ETF model portfolio allocations
State Street Investment Management has maintained its asset allocation for its Risk-Based and Target Income ETF Model Portfolios despite market volatility and adjustments by other major players in the ...Read more
Invest
State Street Global Advisors rebrands as State Street Investment Management
State Street Global Advisors has rebranded as State Street Investment Management as the world's fourth-largest asset manager seeks to reflect its growth strategy and strengthen client partnerships. Read more
Invest
North platform launches 'Blend' model portfolios with BlackRock and Lonsec
AMP's North platform has launched a new model portfolio offering called 'Blend' in partnership with BlackRock and Lonsec Investment Solutions, targeting advice practices that want customised ...Read more
Invest
Australian investors add $8.6 billion to managed funds amid global uncertainty
Australian investors demonstrated cautious resilience by adding $8.6 billion to managed funds between January and May 2025, according to new data from Calastone. Read more
Invest
ASX companies gear up for end of financial year reporting season
ASX-listed companies are preparing for the end of the 2025 financial year, with many seizing opportunities to engage with investors through roadshows and industry conferences. Read more
Invest
Digital finance innovation could deliver $19 billion annual boost to Australian economy
Digital finance innovation has the potential to deliver $19 billion in annual economic gains to Australia, according to new research from the Digital Finance Cooperative Research Centre. Read more
Invest
Echelon completes $400,000 acquisition of Northern Territory gas permit
Echelon Resources has completed the acquisition of a 100 per cent interest and operatorship in Exploration Permit EP145 in the Amadeus Basin, Northern Territory, for $400,000. Read more
Invest
Institutional investors return to risk-taking as tariff fears ease
Institutional investors moved back towards risk-taking in late May following delays to trade tariff implementation, according to State Street's latest Institutional Investor Indicators. Read more
Invest
State Street Investment Management holds steady on ETF model portfolio allocations
State Street Investment Management has maintained its asset allocation for its Risk-Based and Target Income ETF Model Portfolios despite market volatility and adjustments by other major players in the ...Read more
Invest
State Street Global Advisors rebrands as State Street Investment Management
State Street Global Advisors has rebranded as State Street Investment Management as the world's fourth-largest asset manager seeks to reflect its growth strategy and strengthen client partnerships. Read more
Invest
North platform launches 'Blend' model portfolios with BlackRock and Lonsec
AMP's North platform has launched a new model portfolio offering called 'Blend' in partnership with BlackRock and Lonsec Investment Solutions, targeting advice practices that want customised ...Read more
Invest
Australian investors add $8.6 billion to managed funds amid global uncertainty
Australian investors demonstrated cautious resilience by adding $8.6 billion to managed funds between January and May 2025, according to new data from Calastone. Read more
Invest
ASX companies gear up for end of financial year reporting season
ASX-listed companies are preparing for the end of the 2025 financial year, with many seizing opportunities to engage with investors through roadshows and industry conferences. Read more
Invest
Digital finance innovation could deliver $19 billion annual boost to Australian economy
Digital finance innovation has the potential to deliver $19 billion in annual economic gains to Australia, according to new research from the Digital Finance Cooperative Research Centre. Read more
Invest
Echelon completes $400,000 acquisition of Northern Territory gas permit
Echelon Resources has completed the acquisition of a 100 per cent interest and operatorship in Exploration Permit EP145 in the Amadeus Basin, Northern Territory, for $400,000. Read more
Invest
Institutional investors return to risk-taking as tariff fears ease
Institutional investors moved back towards risk-taking in late May following delays to trade tariff implementation, according to State Street's latest Institutional Investor Indicators. Read more
