The research, commissioned by BetaShares, shows the number of investors using ETFs increased 37 per cent to 202,000 in the 12 months to October 2015.
This was up from 146,000, exceeding Investment Trends’ projected growth expectations from the previous year’s report.
The 2015 BetaShares/Investment Trends ETF report found that diversification remained the primary reason individual and SMSF investors used ETFs.
However, access to overseas markets overtook low cost as the next most important reason individual investors used ETFs.
BetaShares managing director Alex Vynokur said ETFs were well on their way to becoming mainstream in Australia, as they were in major global markets.
“Last year was a watershed year for the industry in Australia and the report suggests that this fast growth should continue,” Mr Vynokur said.
“Investors are increasingly realising the benefits that ETFs provide in terms of diversification, cost, transparency and access.
“Furthermore, exchange traded products are becoming more sophisticated with increasing appetite for defensive and managed risk exposures in addition to the active investment strategies underpinning exchange traded managed funds.”
The report also found a record number of 258,000 investors planned on making an ETF investment in the next 12 months.
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