More than 75 per cent of Australian investors will look offshore in the next 12 months using exchange-traded funds (ETF) to make investments, including those holding an SMSF, with many looking to boost their allocations to the listed vehicles, according to VanEck research.
The annual “VanEck Australian Investor Survey 2024” of more than 3500 individual investors found 77 per cent of respondents plan to invest in international equity ETFs in the next year, representing a 27 per cent increase compared to last year.
Investing in international equities was at the top of the list of investment considerations, ahead of Australian equities, with technology and healthcare the leadings sectors of interest for investors.
The research also found ETFs continued to be a leading method to invest overseas, with 60 per cent of all respondents selecting them as their favourite investment product, with that figure rising to 80 per cent for investors aged under 40.
When asked about whether they would increase the level of investments held through ETFs, two-thirds of respondents indicated they would do so in the next 12 months, a rise from 59 per cent in the previous year, while 59 per cent of SMSFs investors this year stated they would also lift their ETF usage.
VanEck Asia-Pacific chief executive Arian Neiron said the profile of Australian investors was moving away from its historic home bias, driven in part by the growth in ETF products.
“The increasing desire to include offshore exposure aligns with the rapid growth of ETFs in the Australian market which offer access to nearly every asset class and market around the world,” Neiron said.
“The growth trajectory of the Australian ETF industry continues to accelerate with record-breaking flows to many of the leading funds.
“By the end of 2024, we expect the ETF market in Australia to reach $220 billion in real passive ETF funds under management.”
