With a new generation already beginning to inherit wealth, financial advice and digital-first platforms are emerging as pivotal infrastructure in how that money is managed, transferred and grown.
Leading players HUB24 and Netwealth remain front-runners, with fund managers pointing to tech-driven scale and adviser adoption as key drivers of long-term upside.
VanEck’s Small Companies Masters ETF maintains exposure to HUB24, although the firm declined to comment on current positioning. The exchange-traded fund (ETF) previously held the stock at a 2.44 per cent weighting, but as at 8 July, according to available data, that holding has been reduced to 2.06 per cent.
“HUB24 continued to post solid results as their share price has continued to outperform the ASX 200,” Jamie Hannah, deputy head of investments and capital markets, VanEck Australia, told InvestorDaily last year.
“I’m not surprised by HUB24’s continued success, as we work with various platforms daily and HUB24 have always excelled in their execution platform and engagement. It’s evident that the success of their execution area flows through into other areas for them to continue their growth trajectory.”
That thesis appears largely intact, with HUB24’s latest third quarter results showing funds under administration (FUA) rising 4 per cent for the quarter to $102.5 billion as at 31 March 2025, an increase of 29 per cent from $79.7 billion at the end of the March quarter in FY2023–24.
Netwealth, too, has kept pace. Its three-month results to 31 March 2025 revealed the wealth management platform’s FUA rose $2.5 billion – or 2.5 per cent – from $101.6 billion in the previous quarter to $104.1 billion.
“For the past two years Netwealth has ranked highly across all three categories and in particular for their low levels of debt and high earnings stability,” Betashares investment strategist Tom Wickenden said.
“Netwealth’s P/E ratio has risen in the past couple years alongside its earnings and share price growth. Expectations remain high for the future growth and earnings of the company,” he told InvestorDaily.
Based on its successes, the platform remains a holding in Betashares’ Australian Quality ETF, which includes the largest ASX-listed companies but weights them by quality metrics rather than market capitalisation. This results in higher exposure to names like Wesfarmers and Macquarie Group, lower exposure to BHP and CBA, and increased allocation to high-quality mid and small caps such as Pro Medicus, Netwealth, and Breville.
AQLT has drawn $195 million in flows so far this year, with funds under management (FUM) reaching $560 million.
“One of AQLT’s key measures of quality is earnings stability. Cyclical companies tend to have poor earnings stability and are screened out due to this fact. However, Netwealth has displayed both strong earnings and earnings stability in recent years – and, as a result, continues to be an inclusion in AQLT,” Wickenden said.
“Ultimately, Netwealth will need to keep delivering in terms of strong FUM growth and adviser adoption to justify its strong P/E ratio and see the stock continue to grow.”
Morningstar’s HUB24 warning
Back in April, despite reporting strong quarterly results, Morningstar forecasts initial tailwinds benefiting the platform in recent years are likely to fall away in the next financial year.
Namely, in an analyst note, the research house said: “We maintain our forecast for reduced net inflows from fiscal 2026 onwards due to volatility and improved products from rivals.
“Given HUB24 remains relatively subscale to incumbent platforms and the tight regulatory scrutiny, we don’t expect the firm to win a price war, nor can it charge a premium for its products. Fee compression and growth investments are likely to limit the degree of operating leverage it can achieve.”
HUB24 has regularly been voted as the top platform for advisers, but Morningstar said competition is likely to narrow with its nearest rival Netwealth, which is developing its own in-house systems. In Netwealth’s quarterly results, it said it is reducing its reliance on third-party systems for core platform functions and expects headcount to increase and investment in capitalised software to increase by $2 million.
Morningstar said: “HUB24 has previously cited in-house systems as a key advantage, enabling faster product development and greater customisation compared to peers like Netwealth. However, in its latest update, Netwealth announced plans to reduce its reliance on third-party systems and invest in developing essential platform features via its own in-house systems.
“Developments like this reinforce our view that any improvements in platform features are likely to be replicated, resulting in competing offerings all having similar functionality – shifting the basis of long-term competition towards pricing.”
