The 2025 Betashares/Investment Trends ETF Adviser Report found that record numbers of financial advisers were utilising ETFs in client portfolios, with stronger confidence and growing depth.
The research found that 73 per cent of Australian financial advisers now recommend ETFs, with a further nine per cent intending to begin within 12 months. Additionally, more than one in four advisers increased their ETF allocation in the past year with high-net-worth advisers showing the highest usage and strongest adoption of ETFs.
The report stated that financial advisers reported that approximately 25 per cent of new client flows outside super were directed into ETFs over the past year, reflecting growing use of ETFs as core building blocks in advised portfolios. Within managed accounts, advisers allocated 29 per cent of new flows to ETFs, while more than one in four advisers increased ETF allocations.
Alex Vynokur, Betashares CEO, said Australian financial advisers continue to adopt ETFs across more parts of their client portfolios, particularly as the universe of investment solutions continues to grow.
“Financial advisers continue to use ETFs across more parts of their client portfolios as the landscape for advice evolves. 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,” Vynokur said.
The report showed that high-net-worth focused advisers remain sophisticated ETF users and demonstrated significantly greater adoption of factor and smart-beta strategies, reflecting a more sophisticated approach to portfolio construction.
They also demonstrated use of ETF to deploy new client funds as well as to replace poorly performing or more costly active managers with ETFs within client portfolios.
The research also noted that high-net-worth advisers are also using ETFs to implement more targeted portfolio tilts, including country and factor rotations, while maintaining strong cost discipline and operational efficiency.
It added that 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.
“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 continued.
The research also highlights the continued expansion of managed accounts for adviser-led portfolio construction, with ETFs playing an increasingly important role within these structures. Advisers allocated close to a third of new client flows within managed accounts to ETFs over the past year.
Industry data also reinforces this momentum. According to IMAP, total managed account assets reached $256.25 billion as of 30 June 2025, reflecting the growing demand for solutions that improve the efficiency of financial advice by delivering institutional-grade investment portfolios.
“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,” Vynokur said.
