The 2025 Betashares/Investment Trends ETF Adviser Report found 73 per cent of advisers now utilise ETFs in client portfolios, the highest level recorded. Adviser adoption is expected to continue rising, with more than 80 per cent of advisers anticipated to be using ETFs over the coming year.
The research shows advisers are allocating a growing share of new client flows to ETFs. Over the past year, approximately 25 per cent of new client flows outside superannuation were directed into ETFs. Within managed accounts, advisers allocated 29 per cent of new flows to ETFs, while more than one in four advisers increased their ETF allocations overall.
Betashares chief executive Alex Vynokur said advisers are using ETFs across more parts of client portfolios as the range of investment solutions continues to expand.
“The inherent attributes of ETFs, including 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 highlights that advisers focused on high-net-worth clients are among the most sophisticated ETF users. This cohort demonstrated significantly greater adoption of factor and smart beta strategies and made greater use of ETFs to deploy new client funds. High-net-worth advisers also reported using ETFs to replace poorly performing or more costly active managers within client portfolios.
According to the research, high-net-worth advisers are also using ETFs to implement more targeted portfolio tilts, including country and factor rotations, while maintaining cost discipline and operational efficiency. Their above-average use of ETFs within managed accounts and bespoke portfolio frameworks reflects the role ETFs play in meeting the complex needs of higher-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,” Vynouker highlighted.
The research also pointed to continued growth in managed accounts for adviser-led portfolio construction, with ETFs playing an increasingly important role within these structures. Advisers allocated close to one-third of new client flows within managed accounts to ETFs over the past year.
Industry data cited in the report shows total managed account assets reached $256.25 billion as at 30 June 2025, highlighting growing demand for portfolio solutions that support the delivery of institutional-grade investment portfolios.
“Managed accounts are helping financial advisers improve efficiency while delivering high-quality, cost-effective investment solutions to their clients,” Vynokur stated.
“Increasingly underpinned by ETFs, managed accounts are expanding the range of investment options, enabling advisers to scale their practices while continuing to provide advice aligned with each client’s individual goals and circumstances.”
Looking ahead, Betashares expects adviser adoption of ETFs to continue accelerating, driven by the expanding ETF universe and the ongoing growth of managed accounts.
“We expect over 80 per cent of Australia’s financial adviser community to adopt ETFs in client portfolios in 2026,” Vynouker said.
“Given the trajectory of adoption, we predict nearly all advisers will be using ETFs in client portfolios by 2030.”
