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Rising trend: 2 million Australians embrace ETFs

Picture of Annabelle Dickson
Annabelle Dickson
Picture of Annabelle Dickson

Annabelle Dickson

Annabelle Dickson was previously a journalist at Financial Standard and prior to that at The Inside Investor and The Inside Adviser. She holds a Bachelor of Arts in Communication (Journalism) from The University of Technology Sydney.
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The ETF industry have been steadily rising today. Annabelle Dickson of Betashares shows us the current market trend which includes 2 million Australians starting to invest in the world of ETFs.

There are now 2 million investors in Australia holding ETFs in their portfolio, up from 1.9 million last year – growth of 7% year on year.

The 2023 Betashares/Investment Trends ETF Report also found that an additional 310,000 Australians intend to invest in ETFs for the first-time next year, while an existing 1.39 million existing ETF investors intend to reinvest more during 2024.

According to the report, investors are motivated by the following four factors to use ETFs:

Investor preferences

Portfolio diversification remains the single biggest reason investors choose ETFs, as has been the case in previous studies.

Convenience (saves me time from choosing individual stocks) also continued to rank second as a driver for ETF adoption, while the ability to gain exposure to specific overseas markets saw an uptick in responses from investors compared to previous years.

The volatile market conditions, coupled with a tense geopolitical environment over the last year, once again highlighted the importance of diversification, which is one of the key benefits of ETFs.

SMSF Investors

Highest forecast growth in new investors since 2020

Looking ahead to next year, the research indicates strong growth prospects, with an additional 310,000 Australians indicating they expect to start investing in ETFs for the first time – the highest pool in the next wave of ETF investors since 2020.

On the back of continued growth in the number of ETF investors, high levels of accessibility, and an ever-increasing universe of ETF solutions, Betashares expects net flows from investors to exceed $20 billion next year, with industry funds under management on track to exceed $180 billion by the end of 2024, up from around $150 billion today.

The 2023 Betashares/Investment Trends ETF Report surveyed 1,275 financial advisers and 1,757 current ETF investors between June and August 2023.

2024 ETF Playbook: Coming in to land

Download our special report to see the economic and market outlook from our Chief Economist, 12 ETF ideas for the year ahead, and 6 charts you can’t ignore in 2024.

Download our free report

Betashares Disclaimer: Betashares Capital Limited (ABN 78 139 566 868, AFSL 341181) is the issuer of Betashares Invest, being the IDPS-like scheme available through the Betashares Direct platform. Before opening an account or making an investment decision, read the Product Disclosure Statement and the Target Market Determination for Betashares Invest, available by emailing Customer Support at [email protected] or by phone on 1300 487 577, to consider whether the product is right for you. You may also wish to consider the relevant Target Market Determination, which sets out the class of consumers that comprise the target market for the Betashares Fund and is available at www.betashares.com.au/target-market-determinations. This information is general in nature and doesn’t take into account any person’s financial objectives, situation or needs. You should consider its appropriateness taking into account such factors and seek professional financial advice. Investments in Betashares Funds are subject to investment risk and the value of units may go up and down. The performance of any Betashares Fund is not guaranteed by Betashares or any other person. Past performance is not indicative of future performance.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author or their clients may have a financial interest in some of companies or securities mentioned.

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