ETF adoption is at record highs, according to a joint report from BetaShares and Investment Trends.
The number of Australian ETF investors has grown 18 per cent year-on-year to 455,000. Millennials make up 43 per cent of new ETF investors, with the average age of investors getting progressively younger.
“Consistent with trends globally, we continue to see a broadening demographic profile across ETF investors, highlighting the accessibility they offer Australians to help achieve their financial objectives – regardless of age, experience levels or wealth,” said BetaShares CEO Alex Vynokur.
The use of ETFs by SMSFs has also increased 12 per cent since 2018, while 58 per cent of financial advisers are now providing advice on ETFs.
Over 135,000 investors are planning to enter the ETF market within the next 12 months, and reinvestment among current ETF investors is at 58 per cent.
“As the end of the decade approaches, it’s clear that Australia’s ETF industry is in a very healthy state,” Mr Vynokur said.
“We broke though the $50 billion barrier only in June this year, but given the industry’s strong underlying fundamentals, we expect AuM in Australian ETFs to reach more than $75 billion by the end of 2020.”