The latest industry research released by specialist fund manager Betashares has shown 73 per cent of financial advisers are using exchange-traded funds (ETF) in their client portfolios.
Further the “2025 Betashares/Investment Trends ETF Investor and Advisor Report” predicted the cohort of advisers placing client investments through ETFs will increase to 80 per cent over the next 12 months.
“Financial advisers continue to use ETFs across more parts of their client portfolios as the landscape for advice evolves,” Betashares chief executive Alex Vynokur noted.
“The inherent attributes of ETFs, diversification, simplicity, transparency and cost effectiveness, allow financial advisers to build stronger client portfolios, while also assisting advisers to improve practice efficiencies,” he said.
In addition he forecast by 2030 nearly all financial advisers would be using the “convenient and cost-effective investment vehicle”.
Advisers who participated in the study indicated approximately a quarter of new client flows, excluding superannuation flows, were directed into ETFs during 2025, usually as core building blocks in a portfolio. They were also a popular instrument in managed accounts, with financial advisers directing 29 per cent of new inflows to these structures into ETFs.
Managed accounts in general are proving a popular choice for advisers for their clients, with total managed account assets growing to $256.25 billion as at end June 2025.
The analysis also revealed high net worth focused advisers have been early adopters and have been using ETFs to tilt clients’ portfolios to particular countries and factors when it suits the particular investor’s risk profile.
“High-net-worth advisers are among the most sophisticated ETF users in the country. They are deploying ETFs not only for broad market exposure but also for precise allocations that align with the unique objectives of their clients,” Vynokur explained.
The “2025 Betashares/Investment Trends ETF Investor and Advisor Report” collated information from a survey that garnered the responses of over 1500 financial advisers and 1700 ETF investors.
