HNW advisers lead record ETF adoption

Yasmine Raso

Senior Journalist, Financial Newswire

21 January 2026

New research commissioned by key exchange traded fund (ETF) player, Betashares, has confirmed a record 73 per cent of financial advisers now report using ETFs in client portfolios, following a significant acceleration in adoption over the last few years.

The 2025 Betashares/Investment Trends ETF Adviser Report indicated that approximately 25 per cent of new client flows outside superannuation were steered into ETFs in the last year, with the same to be said for 29 per cent of new flows within managed accounts after more than one in four advisers increased their allocations to the investment vehicle.

The research found high-net-worth (HNW) advisers led the charge as “sophisticated” ETF users, with higher rates of adoption and implementation of “smart-beta” strategies signifiying a concentrated approach to portfolio construction. They also leveraged ETFs to demonstrate “more targeted portfolio tilts” – including country and factor rotations – while preserving cost effectiveness and portfolio efficiency for clients.

Betashares chief executive, Alex Vynokur, said the research reflects how ETFs are now considered staple “core building blocks” in portfolios and key strategies to meet the complex investment needs of HNW clients.

“Financial advisers continue to use ETFs across more parts of their client portfolios as the landscape for advice evolves,” he said.

“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.

“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.”

The research also emphasised the parallel momentum of managed accounts and ETFs, as both financial adviser and retail investor preference and appetite for these structures continues to grow exponentially.

“Managed accounts are helping financial advisers improve efficiency while delivering high-quality, cost-effective investment solutions to their clients,” Vynokur said.

“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.

“We expect over 80% of Australia’s financial adviser community to adopt ETFs in client portfolios in 2026. However, given the trajectory of adoption of ETFs, we predict that nearly all of Australia’s financial adviser community will use the convenient and cost-effective investment vehicle in client portfolios by 2030.”