Jean Bauler

Vanguard has launched the Vanguard Australian Floating Rate Bond Index ETF (ASX: VFLT), the firm’s first floating rate ETF globally, and managed fund, expanding its fixed income offering for Australian investors seeking regular income.

The ETF and managed fund tracks the Bloomberg AusBond Corporate Liquid FRN 1+ Year Index and provides diversified exposure to Australian dollar-denominated floating rate notes issued primarily by investment-grade corporate borrowers.

Jean Bauler, APAC Head of Fixed Income, said the growth of the category reflects a broader shift in how investors are approaching the defensive portion of their portfolios.

“Income remains a key priority for many investors, particularly those approaching or in retirement. Investors are increasingly looking for solutions that can deliver regular income with relative stability.

Advisers and individual investors are increasingly adopting floating rate exposures for their ability to provide higher income potential, while offering lower interest rate sensitivity than fixed-rate bond investments.

Floating rate products have grown strongly in Australia in recent years, supported by demand for defensive income solutions that sit between cash and other bond investments. The category has attracted significant inflows from investors seeking greater diversification while maintaining a focus on capital stability and income generation.

Unlike fixed-rate bonds, floating rate notes adjust their coupon payments in line with prevailing interest rates. The structure results in lower duration risk, reducing sensitivity to interest rate movements and helping support more stable capital values.

“Floating rate bonds can play a unique role within diversified portfolios because the income adjusts as interest rates move,” Bauler said. “When rates rise, investors can benefit from higher income payments, while the low duration profile helps reduce the price impact typically associated with fixed-rate bonds.”

VFLT has been designed as a low-cost index solution offering diversified exposure to senior floating rate notes, predominantly issued by Australian financial institutions and other corporate borrowers. The ETF distributes income monthly and complements Vanguard’s broader fixed income range by providing investors with an additional defensive allocation option. The ETF carries a market leading management fee of 0.15% per annum, with the managed fund at 0.18% p.a. 

The launch also marks an important milestone for Vanguard’s global fixed income business. VFLT is the first floating rate product developed by Vanguard globally and adds to a fixed income platform that manages approximately AUD$4.3 trillion in assets worldwide.

“As one of the world’s largest fixed income managers, we continue to see strong demand for high-quality, low-cost fixed income solutions,” Bauler said. “VFLT provides investors with a simple and efficient way to access a growing segment of the fixed income market.”

Bauler said fixed income continues to play a vital role in helping investors build resilient portfolios, particularly during periods of market uncertainty.

“For investors seeking income, diversification and stability, fixed income remains a foundational building block. VFLT provides another way for investors to access those benefits through a transparent, low-cost investment solution.”

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Sammy Suzuki

AllianceBernstein (AB) has announced the launch of the AB Emerging Markets Strategic Core Equities Fund – Active ETF (CXA: MORE), providing Australian investors with exchange-traded access to AB’s Emerging Markets Strategic Core strategy. The listing marks the latest step in the continued build-out of AB’s active ETF platform in Australia.

The ETF is built on AB’s established Strategic Core framework, first launched in 2012 and managed since inception by Sammy Suzuki, Head of Emerging Markets Equities, alongside Co-Chief Investment Officer Denise Boynton. Together they bring more than five decades of emerging markets investment experience. The strategy seeks to provide core exposure to the long-term growth potential of emerging-markets equities while aiming to capture around 90% of market upside and roughly 70% of the downside over the long term.

Managing Director of the Australian Client Group, Ben Moore, said the listing reflected AB’s commitment to broadening access to its global capabilities for local investors.  “The build-out of our active ETF platform remains a key plank in our Australian distribution strategy. Following the listing of our Global Strategic Core Equities ETF earlier this year, adding an emerging-markets strategy gives investors another high-quality, actively managed building block in a convenient, transparent and liquid vehicle,” Mr Moore said.

“Emerging markets represent one of the most compelling long-term growth opportunities available today, yet many investors remain underallocated because of concerns around volatility and drawdowns. This strategy has been designed to address exactly that challenge,  pairing a proven lower volatility investment framework that protects the downside while providing the potential for long term capital growth with the accessibility of an ETF,” he said.

Sammy Suzuki, Head of Emerging Markets Equities, said the opportunity in emerging markets had evolved well beyond the perceptions many investors still hold. “Emerging markets are no longer simply a China story. Emerging economies now drive the majority of global GDP expansion, and that growth is often available at a meaningful valuation discount, supported by stronger balance sheets, deeper capital markets and improved governance. EM is also a key part of the AI opportunity, a theme too often viewed through a developed-market lens alone.”

AB believes this backdrop, combined with its downside-aware approach, makes the strategy a timely addition for investors building diversified, long-term portfolios.

“Our philosophy is built on Quality, Stability and Price. By combining fundamental research with quantitative risk management,  an approach we call ‘quantamental’, we aim to own high-quality, stable companies at a sensible price. That is how we seek to beat the market by losing less, giving investors a smoother path to participate in emerging-markets growth over the long run.  We call this winning by not losing,” said Mr Suzuki.

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Alex Vynokur

Leading Australian financial services business Betashares today expanded its growing range of core investment solutions with the launch of four new multi-asset Diversified ETFs designed to make portfolio construction simpler and more cost-effective.

The new range includes three all-in-one, multi-asset ETFs offering curated combinations of growth and defensive assets:

• Betashares Diversified High Growth ETF (ASX: DVHG): 90% growth assets and 10% defensive assets.
• Betashares Diversified Growth ETF (ASX: DVGR): 75% growth assets and 25% defensive assets.
• Betashares Diversified Balanced ETF (ASX: DVBA): 60% growth assets and 40% defensive assets.

Each fund has a management fee of 0.19% p.a., making them the lowest-cost all-in-one diversified ETFs currently available in Australia.

Each fund invests in a professionally constructed passive blend of cost-effective ETFs traded on the ASX and provide exposure to Australian, developed-market and emerging-market equities, global listed infrastructure and Australian and global investment-grade bonds. The range of funds has been designed to provide different risk and return profiles to suit different investors.

Given the upcoming changes to capital gains tax, these all-in-one diversified ETFs offer Australian investors the potential for more tax-efficient outcomes compared to owning the underlying securities directly, which can be critical for building long term wealth.

An all-in-one portfolio for regular credit income

Betashares has also launched the Betashares Diversified Credit Income ETF (ASX: DCRD), an all-in-one portfolio constructed using a blend of Betashares credit income ETFs to provide exposure to senior floating-rate Australian bank bonds (ASX: QPON), subordinated bonds issued by the ‘big 4’ Australian banks (ASX: BSUB), and interest-rate-hedged Australian investment grade corporate bonds (ASX: HCRD).

DCRD simplifies the task of selecting and weighting individual credit income building blocks by providing exposure in a single trade, at an all-in cost of 0.22% p.a.

DCRD further builds on the company’s market leadership in the cash and fixed income ETF category, where Betashares’ assets under management total $18.6 billion, as at August 2026.

The fund intends to pay monthly distributions and expands the Betashares’ credit income fund range, which also includes HBRD, Betashares’ actively managed credit income solution, giving investors more options to access high quality, regular income from bank and corporate credit with reduced interest rate risk.

The fund launches at a point in the rate cycle where investment grade credit is currently offering yields well above the levels that prevailed through most of the past decade, with DCRD’s underlying bond portfolio having a yield to worst of approximately 5.28% p.a. net of fees (as at 7 August 2026, yield is subject to change). At the same time, income is getting harder to find elsewhere, with dividend yields on Australian shares sitting near historic lows, and bank hybrids being progressively phased out.

Diversified funds growing in popularity

The launch comes as diversified ETFs grow in popularity among investors and their financial advisers seeking a more convenient way to build and manage a portfolio.

Professionally constructed using a passive blend of cost-effective ETFs, these funds remove the need to select, monitor and rebalance several individual investments, making diversification simpler to access and easier to maintain over time.

The new funds expand Betashares’ range of core portfolio building blocks and complement the popular Betashares Diversified All Growth ETF (ASX: DHHF). The expanded range leverages Betashares’ long-standing track record of designing and managing professionally constructed multi-asset investment solutions.

Diversified ETFs, including DHHF, have increased in popularity, attracting over $1.1 billion in net inflows year to date and growing to approximately $10 billion in funds under management. Investors and their financial advisers have been increasingly using ETFs as the foundation of their portfolios because they offer a convenient, transparent and cost-effective way to achieve broad diversification, with diversified ETFs in particular serving as a strong core portfolio holding.

Betashares CEO, Mr Alex Vynokur, said the funds were designed to help more Australians build better portfolios through professionally constructed, easy to use, multi-asset ETFs.

“Building a strong portfolio requires thoughtful asset allocation, disciplined rebalancing and a focus on costs. These funds bring all three together in a single, professionally constructed investment solution, delivered through the familiar and convenient structure of an ETF,” Mr Vynokur said.

“DVHG, DVGR and DVBA give investors access to diversified portfolios spanning Australian and global shares, bonds and other defensive assets. DCRD provides exposure to a diversified portfolio of Australian corporate bonds, with the aim of delivering attractive regular monthly income and relative capital stability.

“Our growing range of professionally constructed, multi-asset ETFs give Australians a cost-effective way to build more diversified portfolios and invest with confidence over the long term,” Mr Vynokur concluded.

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Meaghan Victor

State Street Investment Management, Australia’s largest asset manager¹, today announced the upcoming launch of two actively managed exchange-traded funds (ETFs) in Australia in an extension of its liquid credit partnership with Blackstone Credit and Insurance (“Blackstone”). State Street^® Blackstone Senior Loan (AUD Hedged) Active ETF (ASX: SBSL) and State Street^® Blackstone High Income (AUD Hedged) Active ETF (ASX: SBHI) are the first actively managed ETFs launched by either firm in Australia and are scheduled to list on the Australian Securities Exchange (ASX) on 7 August 2026.

SBSL seeks to provide exposure to primarily sub-investment grade floating rate senior secured bank loans, while SBHI is an income-focused ETF that seeks to provide exposure to a dynamic allocation across liquid credit markets, including high yield corporate bonds, senior loans, and debt tranches of US collateralised loan obligations (CLOs).

SBSL and SBHI are feeder funds investing in the US-domiciled State Street^® Blackstone Senior Loan ETF (NYSE: SRLN) and State Street^® Blackstone High Income ETF (CBOE: HYBL), respectively (the Underlying Funds). SRLN is the largest actively managed bank loan ETF² and both funds are Sub-Advised by Blackstone, the world’s largest third-party private credit manager³.  As the investment manager of the Australian-listed ETFs, State Street Investment Management will oversee governance and distribution to intermediary and institutional investors.

Launched in 2013 and 2022, SRLN and HYBL have assets under management of US$5.2 billion (AU$7.55 billion) ⁴ and US$569 million (AU$826 million) ⁴, respectively.

“We’re excited to introduce these two well-established US ETFs to Australian investors in the form of feeder funds. This launch represents an important milestone for State Street Investment Management in Australia,” said Meaghan Victor, Head of Intermediary Client Coverage, Asia Pacific at State Street Investment Management. “We pioneered the ETF industry here 25 years ago, democratising investing and giving all investors access to institutional-grade solutions. Today, we’re proud to build on that innovation by launching our first actively managed ETFs listed locally in Australia at a time when demand for active fixed income strategies is accelerating. We believe active ETFs are still in the early stages of their evolution and will play an increasingly important role in portfolio construction.”

This year also marks the 25^th anniversary of Australia’s first ETFs: the State Street^® SPDR^® S&P^®/ASX 200 ETF (ASX: STW) and the State Street^® SPDR^® S&P^®/ASX 50 ETF (ASX: SFY).

“SBSL is the first ETF in Australia primarily allocating to US senior loans, offering investors access to the AU$2.87 trillion segment of the US corporate credit market⁵,” said Flora Herries, Head of APAC Product at State Street Investment Management. “With bank hybrids being gradually phased out, many investors are seeking alternative high yield solutions. These ETFs offer attractive income opportunities by accessing the higher yielding segments of the corporate bond market.”

Developed in collaboration with Blackstone, SBSL and SBHI offer investors access to Blackstone’s credit expertise, proprietary research, and scale, delivered through a transparent and liquid ETF structure.

Dan Leiter, Global Head of Liquid Credit Strategies and Head of International for Blackstone Credit & Insurance, adds: “We are pleased to partner with State Street to expand access to liquid credit in Australia, a market with deep significance to our investment history and longstanding relationships, and to introduce new products that channel our expertise across our US$125 billion (AU$185 billion) global liquid credit platform⁶. This partnership underscores our commitment to broadening our credit capabilities for a diverse investor base across the Asia Pacific region, where we continue to expand our platform and teams.”

Dan McMullen, Global Head of Loan Strategies for Blackstone Credit & Insurance, said: “The US credit markets offer a diversified set of investing opportunities and we have a unique foothold as the largest global loan manager⁷. This initiative builds on our 25-year credit track record of performance and delivering for investors and expanding their access to leading products.”

——–

Notes:
[1] Source: Rainmaker Wholesale Advantage Report, as of 31 September 2025.
[2] Source: Morningstar Direct, as of 30 June 2026
[3] Source: Blackstone Credit & Insurance analysis of company earnings presentations and calls, as of March 31, 2026, or latest publicly available data.
[4] Source: State Street Investment Management, as of 30 June 2026.
[5] Source: McKinsey & Company, The Next Era of Private Credit, September 2024 (USD/AUD conversion rate on 10 July 2026).
[6] Source: Blackstone Credit and Insurance, as of 31 March 2026.
[7] Source: Blackstone Credit and Insurance, as of 31 March 2026.

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Felicity Walsh

Franklin Templeton has launched two new active ETFs on the ASX, bringing its local active ETF range to nine products and adding to a global trend that has seen inflows into active ETFs double as a proportion of all ETF assets since 2022.

The new active ETFs are the Franklin Global Systematic Equity Fund – Active ETF (FGSE) and the Western Asset Enhanced Income Fund – Active ETF (FEIF). Unlike traditional index ETFs, both strategies aim to deliver consistent alpha while retaining ETF transparency and liquidity.

Active ETFs have topped $1.8 trillion globally, as both retail and institutional investors seek the accessibility, transparency and affordability of the ETF structure.

“Investors today want more choice in the ETF space,” says Felicity Walsh, Managing Director of Franklin Templeton Australia and New Zealand. “Our range of active ETFs are designed to bring together the liquidity and transparency of a listed structure with an active and intelligent approach to portfolio management.”

“We are leveraging the expertise of our investment groups and harnessing the full strength of Franklin Templeton’s global platform, spanning decades of market expertise and deep research capabilities – making all of that available in a format that suits how Australians want to invest today.”

Western Asset Enhanced Income Fund – Active ETF (FEIF)

“FEIF is designed for investors who want to do more with the fixed income portion of their portfolio,” says Anthony Kirkham, co-chief investment officer and head of Asia Pacific Investment Management at Western Asset Management.

“It offers a short-duration, high-quality credit strategy that seeks to generate meaningful income above the cash rate, while actively managing risk across sectors and individual securities. For investors looking for yield without taking on significant interest rate sensitivity, this fund offers a genuinely differentiated option as an active ETF.”

FEIF gives investors access to a diversified portfolio of Australian and global fixed income securities managed by Western Asset Management. The fund targets returns that exceed the Bloomberg AusBond Bank Bill Index by 1.5 to 2 per cent per annum, measured over rolling three-year periods.

The Western Asset Enhanced Income Fund returned 6.12 per cent over one year and 7.54 per cent per annum over three years (after fees) to 30 April 2026, compared with the benchmark’s 3.79 per cent and 4.16 per cent respectively.

The Western Asset Enhanced Income Fund (the managed fund) has Recommended ratings from both Lonsec and Zenith Investment Partners.

Franklin Global Systematic Equity Fund – Active ETF (FGSE)

“FGSE suits investors who want broad global equity exposure and are seeking an approach that goes beyond tracking an index” says Chris Floyd, Portfolio Manager at Franklin Templeton Investment Solutions. “Our systematic process analyses thousands of companies daily across quality, valuation, sentiment and other factors, seeking to identify those with the strongest return potential.

“The result is a style-neutral, diversified portfolio that aims to deliver consistent outperformance over time, one which we think is a compelling proposition for growth investors.”

FGSE offers a quantitatively driven, benchmark-aware exposure to global equities, managed by the Systematic Equity team within Franklin Templeton Investment Solutions (FTIS). The fund aims to outperform the MSCI World ex-Australia Index (after fees) over rolling three-year periods, with a tracking error of 2 to 3 per cent per annum.

Over one year to 30 April 2026 the Franklin Global Systematic Equity Fund returned 15.16 per cent (after fees), and 19 per cent per annum over three years, compared with benchmark returns of 15.06 per cent and 16.52 per cent. The fund has a long track record of outperforming the benchmark having launched in Australia over 20 years ago.

The Franklin Global Systematic Equity Fund (the managed fund) has Recommended ratings from both Lonsec and Zenith Investment Partners.

These two additions join an existing suite of seven active ETFs: the Betashares Western Asset Australian Bond Active ETF (BNDS), the ClearBridge Global Infrastructure Income Fund (Hedged) Active ETF (CIIH), the ClearBridge Global Infrastructure Value Fund Active ETF (CUIV), the ClearBridge Global Infrastructure Value Fund (Hedged) Active ETF (CIVH), the ClearBridge Real Income Fund Active ETF (R3AL), the Franklin Australian Absolute Return Bond Fund Active ETF (FRAR) and the Franklin Global Growth Fund Active ETF (FRGG).

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Industry assets reached an all‑time high of $343.5 billion in February before easing to $329.7 billion by the end of March, reflecting a strong start to the year followed by a sharp equity sell‑off in March. Over the past 12 months, total ETF assets have grown by approximately 36%, highlighting the continued structural shift toward low‑cost, exchange‑traded investment vehicles.

“Global equities remained the dominant allocation over the quarter, capturing nearly half of all ETF flows”, said Chad Troja, Manager, Direct Equities at Lonsec. “Although, the allocation of flows when compared to 12 months ago have visibly shifted away from US-concentrated and hedged strategies toward broader global diversification.”

Allocation towards global equities ($6.90 billion) was followed by Australian equities ($4.15 billion) and Australian bonds ($2.73 billion), as investors balanced growth exposure with defensiveness. Global bond ETFs recorded modest net outflows, marking the weakest asset class for the quarter.

Performance was increasingly polarised. Commodities and energy‑themed ETFs led returns, supported by geopolitical tensions and supply disruptions, while precious metals also performed strongly over the rolling 12 months. In contrast, cybersecurity, crypto‑linked products and speculative growth exposures were among the weakest performers, particularly during the March market drawdown.

Active ETFs continued to expand their footprint, accounting for around 36% of Australia’s 400+ listed ETFs, while passive strategies remained a significant component of new product issuance. Thirteen new exchange-traded products launched during the quarter, with global equity exposures dominating new supply.

The quarter highlighted both the resilience of ETF demand and the speed at which market sentiment can shift. As the product universe continues to expand across active, thematic and income‑oriented strategies, dispersion in returns and flows is becoming more pronounced.

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Måns Carlsson

Ausbil Investment Management Limited (Ausbil) has announced the launch of the Ausbil Active Sustainable Equity Fund (Fund) as an exchange‑traded fund (ETF), expanding investor access to Ausbil’s established sustainable investment capability through the convenience and liquidity of the ASX.

ASUS provides exposure to an actively managed portfolio of predominantly Australian‑listed equities, selected primarily from the S&P/ASX 200 Index, that meet Ausbil’s sustainability approach. ASUS aims to deliver consistent, risk‑controlled outperformance of its benchmark over the long term. It generally holds between 30‑45 Australian‑listed companies and seeks to identify opportunities across market cycles and conditions.

Måns Carlsson OAM, Head of ESG and Co‑Portfolio manager, said the launch reflects the growing demand for sustainable investment solutions that go beyond exclusion screens.

“ASUS brings our active, research‑driven approach to sustainability to the ASX AQUA market, giving investors easier access to a portfolio built around companies which Ausbil believe have relatively good sustainability profiles and are ranked highly by Ausbil on ESG and positioned for long term growth. We believe ESG factors can be a powerful driver of long‑term performance, and ASUS is designed to capture that opportunity.”

Nicholas Condoleon, Portfolio Manager and Deputy Head of Equities, Long Only, highlighted the potential benefits of the active ETF structure for a broader range of investors.

“Quoting the Fund as an Active ETF allows investors to tap into Ausbil’s sustainable investment expertise with the convenience of trading on the exchange. Our process focuses on identifying quality businesses with strong fundamentals and sustainable competitive advantages, and we’re excited to offer this strategy in a format that enhances accessibility and transparency.”

Ausbil’s sustainability approach applies the Fund’s Controversial Activity Exclusion Policy and integrates proprietary environmental, social and corporate governance research. Companies are assessed on both what they do and how they manage ESG factors, resulting in a sustainability profile and score. Only those determined by Ausbil to have good sustainability profiles are considered for inclusion in the Portfolio.

“We are extremely pleased to launch ASUS as an active ETF, our fifth to be listed on the ASX,” said Mark Knight, Chief Executive Officer of Ausbil. “This expands access to Ausbil’s investment capability, enabling a broader range of investors, including retail and advised clients, to invest in a sustainable strategy with a strong track record.”

Since inception (31 January 2018), the Fund has generated a net return of 9.22% pa, compared to the S&P/ASX 200 Accumulation Index return of 8.36% pa, delivering an outperformance of +0.86% pa to 31 March 2026. The Fund has been rated ‘Highly Recommended’ and ‘Recommended’ by Lonsec and Zenith, respectively. The Fund was launched in 2018 and has A$394 million of funds under management as of 31 March 2026.

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Curt Jacques

Vanguard has expanded its Australian investment range offering four new investment options in global technology and international high yield, with three new ETFs and one unlisted managed fund.

The new funds are designed to work as simple, low‑cost building blocks for investors seeking global technology and income‑focused allocations in diversified portfolios.

The four products being launched today are:

• Vanguard Global Technology Index ETF (ASX:VTEK).
• Vanguard Global Technology Index (Hedged) ETF (ASX:VTKH), a currency hedged version of VTEK
• Vanguard International Shares High Yield ETF (ASX:VIHY)
• Vanguard International Shares High Yield Fund, a managed fund version of VIHY

The global technology funds will track the FTSE All‑World Technology 300 Capped Net Tax Index, which includes approximately 300 stocks across more than 20 countries. The funds will have exposure to leading technology companies such as NVIDIA, Apple, Microsoft, Taiwan Semiconductor Manufacturing Company (TSMC) and ASML Holding.

The new international high-yield funds will track the FTSE All-World ex Australia High Dividend Yield Net Tax Index, an income-focused index which covers approximately 2,200 stocks globally.

Curt Jacques, Head of Product Offer at Vanguard Australia, said the new funds respond to increasing interest from Australian investors in global technology and income‑oriented strategies.

“Our new global technology funds give investors access to large and mid-cap tech leaders across developed and emerging markets, not just the U.S.

“Meanwhile, our international high yield funds give investors access to a diversified, income‑generating portfolio of international companies that complements Vanguard’s Australian Shares High Yield ETF and fund,” he said.

David Ho, Head of Pacific, FTSE Russell says, “We are proud to deepen our global collaboration with Vanguard through the launch of these new funds, supported by our indices that provide diversified exposure to global technology innovation and resilient international income. We look forward to supporting Vanguard as they continue to expand and evolve their offering for investors worldwide.”

The new funds are offered at these management fees, VTEK 0.23%, VTKH 0.26%, VIHY 0.30% with the managed fund 0.36% per annum.

The ETFs will be available for trading on the ASX from 25 March, while the unlisted fund can be accessed via Vanguard Personal Investor also from 25 March.

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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.

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Chris Bedingfield

The Quay Global Real Estate Fund (Unhedged) Active ETF (ASX:QGRU) and the Quay Global Real Estate Fund (AUD Hedged) Active ETF (ASX:QGFH) are available for trading on the ASX from Monday 24 November.

Offering investors enhanced access to Quay Global Investors funds via the ASX is a significant milestone in the twelve year history of the highly-rated award-winning Quay Global Investors team lead by Justin Blaess and Chris Bedingfield. Demand for an ASX listed offering speaks to the strength of Quay’s proposition and their commitment to the preservation and creation of wealth through a differentiated approach to managing global real estate equity portfolios.

The new active ETFs provide ASX investors with access to a concentrated, high conviction portfolio of real estate securities listed on exchanges around the world. Unlike the Australian real estate market which primarily offers exposure to the retail, office and residential sectors, global real estate offers a much broader universe including aged care, student housing, data centres and storage facilities.

The objective of the ETFs is to provide investors with a total return (before fees and expenses) of the Australian Consumer Price Index (CPI) plus five per cent per annum measured over five years or more. The portfolio typically holds 20 to 40 securities, with most income derived from leases, rent and other real estate related income.

Gillian Larkin, chair of the Bennelong Funds Management Ltd Board said: “Quay are one of Bennelong’s strongest and fastest-growing investment partners. These two new active ETFs represent an important step in Bennelong’s strategy to enhance investor access to our leading investment solutions.”

Bennelong Funds Management CEO John Burke said: “Share market natives have limited options to build a high conviction index unaware allocation to global property, so making Quay’s popular proposition available via the ASX was a logical step.

“Active ETFs are an increasingly popular investment vehicle, and we are seeing retail investors seeking more sophisticated ETF offerings, which replicate those managed by experienced investment teams such as Quay Global Investors.” said Mr Burke.

Quay principal and portfolio manager Justin Blaess said: “The team is proud to reach this milestone. As specialists in listed real estate securities globally we believe an active exposure to global listed property can be a valuable inclusion in a truly diversified portfolio.”

Quay principal and portfolio manager Chris Bedingfield adds that the market conditions are supportive of global real estate investments.

“As investors we are observing deeply discounted valuations globally and consider them to be markedly disconnected from the sector’s robust fundamentals. As such, discounted valuations provide us with opportunity,” said Mr Bedingfield.

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