Australian investors show discipline amid uncertainty, confidence in volatility

Fraser Allan

CMC Invest, Australia’s largest non-bank share trading platform, has unveiled the investment behaviours of Australian retail investors in its inaugural Inside Invest Report.

The report reveals Australian investors remained resilient in the face of uncertainty in 2025, balancing diversification with selective conviction, and using volatility as a point of action, rather than an excuse for delay.

In a year dominated by global geopolitical uncertainty, trade tensions and interest rates that remained higher for longer rather than retreating to the sidelines, clients continued to invest through volatility. Across 2025, around 75% of all trades were ‘buy’ orders.

A clear trend emerged of investors looking to get broad local and international exposure through ETFs, with a clear ‘Big Four’ ETFs emerging – IVV, VGS, VAS and NDQ, ranking as the four most traded instruments overall.

“On the surface, 2025 appeared positive looking at the returns of major indices, both here and abroad. However, in practice, it was a difficult year to navigate,” said Director of Premium Client Trading ANZ at CMC Invest, Fraser Allan. “Rates remained higher for longer, trade tensions resurfaced, AI-driven enthusiasm intensified, and geopolitical pressures persisted. Euphoric rallies in gold and silver added to the sense of unease, pointing to growing uncertainty in global markets.

“Despite that backdrop, CMC Invest client behaviour in 2025 tells a story of resilience and discipline. When uncertainty rose, clients chose patience over panic. When opportunities emerged, they stepped forward with conviction.”

Home bias holds firm

Total orders executed on ASX-listed stocks were almost six times higher than those on US stocks in 2025, demonstrating a strong home bias when investing in individual companies.

Investment activity was concentrated in familiar blue-chip companies across financials, materials, and consumer stocks, broadly reflecting the structure of the Australian share market, as well as the appeal of long-term track records, brand familiarity, and dividend income.

Two blue-chip ASX companies illustrated how investors responded differently to volatility and changes in share prices during the year:

• CBA: investor activity was more evenly split, with 56% of orders on the buy side, potentially reflecting greater sensitivity to company-specific factors such as valuation.

• CSL: behaviour showed a clearer buy-the-dip pattern, with 84% of orders on the buy side as clients added exposure following a significant share price decline over the year.

Two names dominate US markets

Unlike the more even participation seen across ASX stocks, US investing concentrated in two retail favourites, NVIDIA and Tesla, that accounted for around half of all trades among the top 10 US stocks.

• NVIDIA: was the most traded stock on the entire platform in 2025, ahead of BHP and CSL, and the fifth most traded instrument overall, reflecting how strongly the AI narrative captured investor attention throughout 2025.

• TSLA: Similar to CSL on the ASX, clients showed a tendency to “buy the dip”. April was the second-strongest buying month (behind July), with 77% of orders on the buy side.

Crypto goes mainstream

Bitcoin trading activity further highlighted how portfolios are evolving. By total orders executed, Bitcoin ranked ninth overall traded instrument, and fourth when ETFs are excluded, placing it alongside the platform’s most actively traded assets.

Around 82% of Bitcoin orders were placed on the buy side, a much stronger skew than seen in most top ASX and US stocks. This level of buy-side activity is notable given Bitcoin’s elevated volatility during 2025, including two drawdowns of roughly 30%.

Despite this, client behaviour remained strongly skewed towards accumulation.

Strong buying conviction in offshore markets

Outside the ASX and US, trading activity in 2025 showed a more adventurous streak, as clients explored a broader mix of global opportunities across the additional 14 international markets available on the CMC Invest platform.

Metaplanet emerged as CMC Invest’s most traded stock outside the ASX and US markets in 2025, reflecting elevated retail interest in Bitcoin treasury companies.

China, via Hong Kong, dominated offshore trading with EV heavyweight BYD, and HK tech leaders Alibaba, Xiaomi and Tencent all featuring in the top 10 traded stocks outside Australia and US.

“Overall, 2025 reinforced some familiar lessons. Markets rarely move in straight lines, and progress often comes from staying disciplined through uncertainty,” Mr Allan said. “Local investors remained engaged, navigating a challenging year with a clear focus on long-term outcomes rather than short-term noise.”

“Looking ahead to 2026, uncertainty and market volatility are likely to persist. Against this backdrop, we expect investors to remain active in identifying opportunities, both domestically and offshore, using diversification and exposure to high-quality blue-chip companies to support long-term investment goals.”