Aussie ETF investors hit 2 million: What’s luring people?

share trading etfs

Aussie investors are eating up ETFs (exchange-traded funds) with more than 2 million currently invested in ETFs for the first time according to fund manager Betashares. And it isn’t likely to stop there, with the fund manager finding that an additional 310,000 can be expected to enter into the market over the coming years.

But an increase in investors isn’t the only thing. According to the report, ETF investors are expecting to make an average portfolio growth of 6% next year after an average 2% gain from this current year.

So what’s all this talk of ETFs mean for the average investor?

What are ETFs?

If you’re new to investing, you might not know what ETFs are. Exchange-Traded Funds are a type of investment fund that holds assets like stocks, bonds, or commodities. Commonly, share based ETFs will follow a particular theme (Technology, mining, consumer defensive, etc.) or may follow an index (like the S&P500 for US or S&P/ASX 200 for Australian shares).   

As “exchange traded” suggests, ETFs are traded on stock exchanges, much like individual stocks, which means they can be bought and sold throughout the trading day at market price. The flexibility of trading and inherent diversification may be one of the reasons so many Aussie investors have decided to park their cash in them.

How technology changes investing

Technological advancements have also played a significant role. Online trading platforms have made ETFs more accessible than ever, allowing investors to manage their portfolios with ease. The rise of robo-advisors, which often use ETFs to create diversified portfolios, has further simplified the investment process for individuals.

There’s no telling how far technology will influence share trading, as some investors have already taken to AI advisors, although the technology is still rudimentary at best. However, it's important to note that the internet was also brushed off and is now the majority of how most retail investors trade. 

Where are ETFs heading?

Looking forward, the ETF market in Australia shows no signs of slowing down. With the continuous introduction of innovative ETF products that cater to evolving investor needs, such as sustainable investing ETFs, the market is expected to expand further. 

Betashares predicts that the ETF industry will continue to grow, both in terms of the number of investors and the total assets under management.

“On the back of continued growth in the number of ETF investors, high levels of accessibility and an ever-increasing universe of ETF solutions, we expect net flows from investors to exceed $20 billion next year,” Betashares chief executive Alex Vynokur said. They also found that industry funds under management were “on track to exceed $180 billion by the end of 2024, up from around $150 billion today”. 

If you’re looking to get started with ETFs, one of the easiest ways to do that is to open up an account with an online broker. You can check out some share trading platforms on our main hub page or compare some of the platforms below… 

Share account comparisons on Mozo - rates updated daily

Search promoted share trading below. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2024
    Share Trading

    Small trade brokerage
    Monthly fee
    $3.00
    $0.00

    Invest in AU stocks, US stocks, HK stocks and ETFs on moomoo trading platform. US trades from $0.99 USD, other fees apply. Backed by a Nasdaq-listed fintech. (T&Cs apply).

    Details
  • placeholder
    ASX Shares

    Small trade brokerage
    Monthly fee
    $0.00
    $0.00

    Join the world’s leading social trading platform, trusted by 30 million users worldwide. Invest in stocks, crypto, ETFs and more - all in one place. Hone your financial skills with a $100K virtual demo account.

    Details
  • placeholder
    Mozo Experts Choice 2024
    Share Investing

    Standard

    Small trade brokerage
    Monthly fee
    $0.00
    $0.00

    CMC Markets Invest makes it easy to trade with a handy web and mobile platform, competitive pricing and thousands of securities. Buy Australian and US shares from $0 brokerage (T&Cs apply - see website for full details).

    Details
  • placeholder
    Tiger Account

    Small trade brokerage
    Monthly fee
    $5.50
    $0.00

    Tiger Brokers is an online broker listed on NASDAQ. It offers access to US, ASX & HK stocks, ETFs and US options trading. Earn 7% p.a. on uninvested cash balance up to AUD 100,000 for the first 150 days, with a value up to AUD 2,877. Plus get US$30 Tesla (TSLA) and US$30 NVIDIA (NVDA) shares with an accumulated deposit greater than AUD 2000. T&Cs apply – for full details, go to the Tiger Brokers website.

    Details
  • placeholder
    Share Trading

    Small trade brokerage
    Monthly fee
    $7.70
    $0.00

    Buy and sell with a low $7.70 flat fee per trade and access to all ASX Shares and ETFs to invest in with GO Markets. Enjoy dedicated local customer support, a regulated Australian company for trading ASX Shares and ETFs. Plus, enjoy $0 Brokerage on your next 15 trades! (T&Cs apply).

    Details
  • placeholder
    Idle Cash

    Small trade brokerage
    Monthly fee
    $5.50
    $0.00

    Receive interest on your uninvested cash. Deposit over USD/AUD 5,000 to start receiving 1.5% return; 2.25% return on over AUD 50,000; Up to 3.25% return on over USD 50,000. Mozo special offer for new users only: Get USD 50 fractional shares plus USD 25 Tesla shares with a cumulative net deposit of min. AUD 500 within 7 days of the first account opening. T&Cs apply.

    Details
  • placeholder
    Share Trading

    Small trade brokerage
    Monthly fee
    $8.00
    $0.00

    Enjoy access to over 13,000 local and international shares and ETFs with $0 Commission on all international shares including US. Trade pre- and post-market with extended hours on over 70 key US shares. Get better rates on domestic shares for active traders - trade Australian shares from $5 commission. (T&Cs apply). Around the clock customer support from real humans (not chat bots). Trade international and Australian shares from the one account with intuitive desktop and mobile app.

    Details

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.