Almost two-thirds of financial advisers are now using ETFs, according to the Betashares/Investment Trends ETF Investor and Adviser Report, marking record-level engagement.
The survey of 1,505 financial advisers and 1,770 ETF investors revealed that some 73 per cent of Australian advisers are now using ETFs in client portfolios, with this number likely to increase beyond 80 per cent over the next year.
A growing confidence in ETFs has seen adviser funnelling around a quarter (25 per cent) of new client flows, excluding super, into these asset solutions over 2025. Betashares said this shows the growth in ETF usage as core building blocks in advised portfolios.
High net worth (HNW) advisers are reportedly using ETFs to replace poor performing or costly active managers within client portfolios and deploy new client funds as well as implementing targeted portfolio tilts, such as country and factor rotations.
Betashares said: “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.”
Within managed accounts, which have also been growing in favour among advisers, 29 per cent of new flows were directed to ETFs, with more than one in four advisers increasing their ETF allocations.
According to the Institute of Managed Account Professionals’ (IMAP) H1 2025 FUM census, managed accounts saw net inflows of $16.7 billion in the six months to 30 June, marking a 24.6 per cent increase on the prior corresponding period when inflows stood at $10.6 billion.
IMAP chair Toby Potter said the growth and advisers’ increased use suggests the “managed account market is now in the maturity phase”.
Notably, HNW advisers are leading the charge on increased ETF uptake, with Betashares stating these advisers are demonstrating “significantly greater adoption of factor and smart beta strategies”.
Although advisers have long been key drivers of ETF usage, the survey findings suggest an accelerated adoption of late, particularly as the uptake of managed accounts increases and the overall ETF market expands.
Last year saw a record 71 ETFs comes to market, according to Betashares’ annual ETF review, with inflows hitting an all-time high of $53 billion in 2025, marking significant growth from the previous year of $30 billion, which was the record at the time.
The report suggested that inflows could grow to $400 billion by the end of 2026.
Betashares chief executive Alex Vynokur suggested the ability of ETFs to deliver diversification, simplicity, transparency and cost efficiency has allowed advisers to build stronger portfolios and help streamline practice processes, fuelling the industry’s broad uptake of ETFs.
“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,” Vynokur said.
“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.”
Looking ahead, he expects more than 80 per cent of advisers will adopt ETFs in their 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.”
