SMSF allocations to exchange-traded funds (ETF) grew at one of the fastest rates of any asset class in the 2026 financial year, according to analysis performed by administration software platform Class on its client data.
The “Class 2026 Annual Benchmark Report” released this week found ETF allocations for SMSFs rose one percentage point to 7.2 per cent of all assets in 2025/26.
Specifically, among the most widely held ETFs involved international equities, with six of the 10 most popular offerings for the past financial year providing access to this underlying asset class.
Further, it was revealed 35.5 per cent of SMSFs were invested in at least one ETF. The study showed they are now the third most popular holding in fund portfolios behind cash and term deposits, being the most prevalent, and Australian listed securities, the second most widely held assets.
In addition, Australian listed equities had the highest allocation at 26.4 per cent of all assets by value, followed by direct property at 21.1 per cent, with cash and term deposits accounting for 15.1 per cent.
The proportion of SMSFs holding Australian listed securities declined by 1.9 per cent from the previous year to land at 56.5 per cent in 2025/26. The number of funds holding units in managed funds fell by 0.9 per cent, with 30.2 per cent of them in this category. SMSFs invested in direct property dropped 1.2 per cent, resulting in 29.7 per cent of funds belonging to this cohort.
Within property, commercial real estate proved to have the highest allocation and SMSFs holding these assets had larger overall balances. Here funds with more commercial property in their portfolios had an average balance of $3.2 million compared to $1.4 million for SMSFs solely invested in residential dwellings. The average commercial property value was $1.3 million, compared to $784,000 for residential property.
In reference to cryptocurrency, SMSF holdings reflected no major growth, with allocations remaining small. The report indicated 2.2 per cent of SMSFs held cryptocurrency in the 2026 income year, down slightly from 2.3 per cent in 2024/25. This type of digital asset also represented just 0.3 per cent of total SMSF assets by value in 2025/26.
“Taken together, the Class and ATO data show that cryptocurrency remains a relatively small part of SMSF portfolios. While the proportion of Class SMSFs holding crypto has moved slightly over the past three years, there has been no material increase in its popularity or share of Class SMSF assets,” the firm stated in the report.
