A new report reveals a rapid shift in how Australian advisers are integrating exchange traded funds into client portfolios, with high-net-worth professionals leading the charge and global equities gaining popularity.
New research commissioned by ETF provider Betashares shows a rapid and broad shift in how Australian financial advisers construct portfolios, with 73% now reporting the use of exchange traded funds (ETFs) for clients , a record high, the company said in a report released alongside the 2025 Investment Trends survey.
The study found advisers directed about 25% of new client flows outside superannuation into ETFs over the past year, and 29% of new flows within managed accounts. According to Betashares, managed accounts and ETFs are moving in tandem: the structures are increasingly intertwined as advisers seek scalable, cost-efficient ways to deliver tailored advice. Industry reporting notes the proportion of advisers using ETFs is expected to rise above 80% in the coming year.
High‑net‑worth (HNW) advisers emerged as the most active cohort, described by Betashares as “sophisticated” ETF users. They are deploying ETFs not only for broad market exposure but for precise portfolio tilts , including country and factor rotations , and for “smart‑beta” strategies intended to replace underperforming or costly active managers while preserving cost effectiveness and portfolio efficiency for clients.
Betashares chief executive Alex Vynokur said the findings reflect a change in the adviser toolkit. “Financial advisers continue to use ETFs across more parts of their client portfolios as the landscape for advice evolves,” he said to Financial Newswire. “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. 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.”
The company’s wider 2025 Investment Trends data underscores the retail side of the shift: ETFs now comprise 17% of the average investment portfolio, the highest level recorded, and 80% of ETF investors say they plan to increase holdings in 2026. Global equity ETFs have attracted substantially more flows than domestic equity products in 2025, with Betashares reporting about $17.3 billion into global equity ETFs versus $10.6 billion into Australian equity ETFs , a sign of growing appetite for international diversification.
While Betashares projects that “over 80% of Australia’s financial adviser community” will adopt ETFs in 2026 and that “nearly all” advisers will be using them by 2030, analysts and market commentary note this transition involves trade‑offs. Advisers gain scale, transparency and lower fees, but the shift also raises questions about implementation risks, concentration in popular ETF strategies and the potential for fees and tracking differences to emerge as important differentiators over time.
As ETFs consolidate their role as core building blocks in advised portfolios, the interplay with managed accounts and adviser practice models will be a key feature to watch. According to the report by Betashares, the combination is helping advisers scale and deliver tailored solutions, but the growing prevalence of ETFs also puts a premium on adviser skill in selecting and integrating products that genuinely enhance outcomes for clients.
- https://financialnewswire.com.au/funds-management/hnw-advisers-lead-record-etf-adoption/ – Please view link – unable to able to access data
- https://www.ifa.com.au/etf-use-deepens-across-adviser-portfolios-as-adoption-reaches-record-levels/ – A report from Betashares reveals that 73% of Australian financial advisers now incorporate ETFs into client portfolios, marking a record high. The study indicates that approximately 25% of new client flows outside superannuation were directed into ETFs over the past year, with 29% allocated within managed accounts. High-net-worth advisers are leading this trend, employing ETFs for precise portfolio allocations and implementing smart-beta strategies to enhance portfolio efficiency and cost-effectiveness for clients.
- https://www.moneymanagement.com.au/advisers-funnelling-quarter-of-client-flows-into-etfs/ – According to Betashares, nearly two-thirds of financial advisers are now using ETFs, with 73% incorporating them into client portfolios. This adoption is expected to surpass 80% in the coming year. The report highlights that advisers are allocating approximately 25% of new client flows, excluding superannuation, into ETFs, reflecting their growing role as core components in advised portfolios. High-net-worth advisers are particularly active, using ETFs to replace underperforming or costly active managers and to implement targeted portfolio tilts, such as country and factor rotations.
- https://www.moneymanagement.com.au/advisers-funnelling-quarter-of-client-flows-into-etfs/ – Betashares reports that 73% of Australian financial advisers now utilise ETFs in client portfolios, with this figure expected to exceed 80% in the next year. The study shows that approximately 25% of new client flows outside superannuation were directed into ETFs over the past year, indicating their increasing role as core building blocks in advised portfolios. High-net-worth advisers are leading this trend, employing ETFs to replace underperforming or costly active managers and to implement targeted portfolio tilts, including country and factor rotations.
- https://www.betashares.com.au/insights/investment-trends-2025-retail/ – Betashares’ 2025 Investment Trends Report indicates that 80% of ETF investors plan to increase their holdings in 2026. The report highlights that ETFs now comprise 17% of the average investment portfolio, the highest level recorded. It also notes that 65% of ETF investors are likely to allocate to global equities, with global equity ETFs attracting $17.3 billion in 2025, compared to $10.6 billion into Australian equity ETFs. The findings reflect a fundamental shift in how Australians build wealth, with ETFs providing an accessible alternative to traditional investment pathways.
- https://www.betashares.com.au/insights/investment-trends-2025-retail/ – Betashares’ 2025 Investment Trends Report reveals that 80% of ETF investors plan to increase their holdings in 2026. The report highlights that ETFs now comprise 17% of the average investment portfolio, the highest level recorded. It also notes that 65% of ETF investors are likely to allocate to global equities, with global equity ETFs attracting $17.3 billion in 2025, compared to $10.6 billion into Australian equity ETFs. The findings reflect a fundamental shift in how Australians build wealth, with ETFs providing an accessible alternative to traditional investment pathways.
- https://www.betashares.com.au/insights/investment-trends-2025-retail/ – Betashares’ 2025 Investment Trends Report indicates that 80% of ETF investors plan to increase their holdings in 2026. The report highlights that ETFs now comprise 17% of the average investment portfolio, the highest level recorded. It also notes that 65% of ETF investors are likely to allocate to global equities, with global equity ETFs attracting $17.3 billion in 2025, compared to $10.6 billion into Australian equity ETFs. The findings reflect a fundamental shift in how Australians build wealth, with ETFs providing an accessible alternative to traditional investment pathways.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on 21 January 2026, which is recent. However, the data it references pertains to the 2025 Betashares/Investment Trends ETF Adviser Report, which may have been released earlier. The Financial Newswire article cites the report but does not provide a specific release date. Without confirmation of the report’s release date, it’s challenging to assess the freshness of the data. Additionally, similar findings have been reported by other sources, such as the 2025 VanEck Smart Beta Survey, which indicates intensified ETF adoption among advisers. ([vaneck.com.au](https://www.vaneck.com.au/news-and-media/news/media-release/smart-beta-research-10-years-on2/?utm_source=openai)) This suggests that the information may not be entirely new.
Quotes check
Score:
7
Notes:
The article includes direct quotes from Betashares CEO Alex Vynokur. A search for these quotes reveals that they are also present in Betashares’ own publications, such as their 2025 Investment Trends report. ([betashares.com.au](https://www.betashares.com.au/insights/investment-trends-2025-retail/?utm_source=openai)) This raises concerns about the originality of the quotes and whether they have been independently verified.
Source reliability
Score:
6
Notes:
The article is published by Financial Newswire, a specialist financial news outlet. While it is a niche publication, it is known within its sector. However, the article relies heavily on information from Betashares, a company with a vested interest in promoting ETFs. This raises questions about potential bias and the independence of the information presented.
Plausability check
Score:
7
Notes:
The claims about the increasing adoption of ETFs among financial advisers are plausible and align with broader industry trends. However, the article lacks specific details, such as the exact methodology of the Betashares/Investment Trends ETF Adviser Report and the sample size, making it difficult to fully assess the credibility of the claims. Additionally, the article does not provide independent verification of the data, which is a concern.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information on the increasing adoption of ETFs among financial advisers, citing the 2025 Betashares/Investment Trends ETF Adviser Report. However, the reliance on a single source with a vested interest, the lack of independent verification, and the absence of specific methodological details raise significant concerns about the credibility and independence of the information presented. Given these issues, the content does not meet the necessary standards for publication.