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
Australian investors flock to US stocks and crypto after Trump victory
Trading volumes in US equities surged 20 per cent on Australia's second-largest share trading platform following Donald Trump's election victory last month, as local investors sought to capitalise on ...Read more
Invest
Investment firm raises $9bn for global special situations fund
Bain Capital secured $9 billion for its latest Global Special Situations Fund, positioning the firm as one of the world's largest special situations investors. Read more
Invest
Morrison Securities unveils plug-and-play global trading access to 15 countries
Equities clearing firm Morrison Securities has partnered with trading technology provider ViewTrade to introduce one of Australia's first plug-and-play global trading solutions, enabling streamlined ...Read more
Invest
Institutional investors react positively to policy stimulus in September
State Street Global Markets has reported a rebound in institutional investor risk appetite in September, driven by supportive policy announcements from central banks. Read more
Invest
AMP partners with Striver for Brimstone event to attract new financial advisers
AMP has announced a partnership with advice community and careers technology platform Striver for the annual Brimstone event series, scheduled to take place in Sydney next week. Read more
Invest
North expands managed portfolio options with new customisation features
North, a leading Australian wrap investment platform, has announced an expansion of its customisation options for managed portfolios, aiming to provide advisers with greater flexibility for their ...Read more
Invest
State Street partners with Taurus to expand digital asset capabilities
State Street Corporation has announced a strategic agreement with digital asset infrastructure provider Taurus SA to enhance its digital asset offerings for institutional clients. Read more
Invest
State Street to provide custody and administration services for Brighter Super's $30 billion in funds
State Street Corporation has been chosen as custodian and administrator for more than $30 billion in funds invested for members of Queensland-based superannuation fund Brighter Super. Read more
Invest
Australian investors flock to US stocks and crypto after Trump victory
Trading volumes in US equities surged 20 per cent on Australia's second-largest share trading platform following Donald Trump's election victory last month, as local investors sought to capitalise on ...Read more
Invest
Investment firm raises $9bn for global special situations fund
Bain Capital secured $9 billion for its latest Global Special Situations Fund, positioning the firm as one of the world's largest special situations investors. Read more
Invest
Morrison Securities unveils plug-and-play global trading access to 15 countries
Equities clearing firm Morrison Securities has partnered with trading technology provider ViewTrade to introduce one of Australia's first plug-and-play global trading solutions, enabling streamlined ...Read more
Invest
Institutional investors react positively to policy stimulus in September
State Street Global Markets has reported a rebound in institutional investor risk appetite in September, driven by supportive policy announcements from central banks. Read more
Invest
AMP partners with Striver for Brimstone event to attract new financial advisers
AMP has announced a partnership with advice community and careers technology platform Striver for the annual Brimstone event series, scheduled to take place in Sydney next week. Read more
Invest
North expands managed portfolio options with new customisation features
North, a leading Australian wrap investment platform, has announced an expansion of its customisation options for managed portfolios, aiming to provide advisers with greater flexibility for their ...Read more
Invest
State Street partners with Taurus to expand digital asset capabilities
State Street Corporation has announced a strategic agreement with digital asset infrastructure provider Taurus SA to enhance its digital asset offerings for institutional clients. Read more
Invest
State Street to provide custody and administration services for Brighter Super's $30 billion in funds
State Street Corporation has been chosen as custodian and administrator for more than $30 billion in funds invested for members of Queensland-based superannuation fund Brighter Super. Read more
