Alex Vynokur
Leading Australian financial services business, Betashares, today announced new industry research showing that a record 73% of Australian financial advisers now utilise ETFs in client portfolios, with that number set to increase to over 80% in the coming year.
The 2025 Betashares/Investment Trends ETF Adviser Report found that record numbers of financial advisers were utilising ETFs in client portfolios, with stronger confidence and growing depth. Financial advisers reported that approximately 25% of new client flows outside super were directed into ETFs over the past year, reflecting growing use of ETFs as core building blocks in advised portfolios. Within managed accounts, advisers allocated 29% of new flows to ETFs, while more than one in four advisers increased ETF allocations.
Announcing the findings, Betashares CEO, Mr Alex Vynokur, said Australian financial advisers continue to adopt ETFs across more parts of their client portfolios, particularly as the universe of investment solutions continues to grow.
“Financial advisers continue to use ETFs across more parts of their client portfolios as the landscape for advice evolves. 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,” Mr Vynokur said.
High-net-worth advisers leading ETF sophistication
The report shows that high-net-worth focused advisers remain sophisticated ETF users. This cohort demonstrates significantly greater adoption of factor and smart-beta strategies, reflecting a more sophisticated approach to portfolio construction. This cohort of advisers has also demonstrated use of ETF to deploy new client funds as well as to replace poorly performing or more costly active managers with ETFs within client portfolios.
High-net-worth advisers are also using ETFs to implement more targeted portfolio tilts, including country and factor rotations, while maintaining strong cost discipline and operational efficiency. Their above-average usage of ETFs within managed accounts and bespoke portfolio frameworks highlights the extent to which ETFs have become key tools in meeting the complex needs of high-value clients.
“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,” Mr Vynokur continued.
ETFs and managed accounts continue strong growth trajectory
The research also highlights the continued expansion of managed accounts for adviser-led portfolio construction, with ETFs playing an increasingly important role within these structures. Advisers allocated close to a third of new client flows within managed accounts to ETFs over the past year.
Industry data also reinforces this momentum. According to IMAP, total managed account assets reached $256.25 billion as at 30 June 2025, reflecting the growing demand for solutions that improve the efficiency of financial advice by delivering institutional-grade investment portfolios.
“Managed accounts are helping financial advisers improve efficiency while delivering high-quality, cost-effective investment solutions to their clients. Increasingly underpinned by ETFs, managed accounts are expanding the range of investment options, enabling advisers to scale their practices, while continuing to provide advice that is aligned with each client’s individual goals and circumstances,” Mr Vynokur said.
Broader ETF range to drive next phase of adviser adoption
Financial advisers have been at the forefront of ETF usage for many years, however, the research suggests an acceleration of adoption of ETFs by financial advisers. Driven by the growing universe of ETFs, as well as interrelated adoption of managed accounts, the findings suggest that ETFs will be adopted by the vast majority of all financial advisers in the coming years.
“We expect over 80% of Australia’s financial adviser community to adopt ETFs in client portfolios in 2026. However, given the trajectory of adoption of ETFs, we predict that nearly all of Australia’s financial adviser community will use the convenient and cost-effective investment vehicle in client portfolios by 2030,” Mr Vynokur concluded.
The 2025 Betashares/Investment Trends ETF Investor and Adviser Report surveyed 1,505 financial advisers and 1,770 ETF investors between June and July 2025.