Self-directed investors turn to ETFs

Mike Taylor

Managing Editor and Publisher

31 March 2026

Exchange traded funds (ETFs) have become the most popular investment category for self-directed investors, accounting for around 21% of total traffic on the InvestmentMarkets platform.

In new analysis released this week, InvestmentMarkets apportioned 21% of total traffic to ETFs, followed by global equity funds at 20%.

The analysis pointed to the shift away from income-focused investment options.

“Just a few months ago, property funds, mortgage funds, diversified income funds, and private credit occupied four of the top five spots, and with bond funds also in the Top 10, they collectively represented over 50% of all platform traffic. That picture has changed markedly,” it said.

The analysis noted that the shift mirrored a broader national trend.

“Industry data shows Australian ETFs attracted a record $53 billion in net inflows in 2025 – 76% above the prior year’s record – with international equities the single most popular category at $20.9 billion. The Australian ETF industry is now forecast to surpass $400 billion in funds under management in 2026, up from $330 billion at the end of last year,” it said.

InvestmentMarkets chief executive, Darren Connolly said investor behaviour on the company’s platform tends to be a leading indicator of broader sentiment shifts.

“The move towards a more global orientation, irrespective of structure isn’t a huge surprise, but the speed of the rotation – and the sharp decline in private credit in particular – suggests investors are making some significant calls in a short period of time,” Connolly said.

Alternative assets – including commodities, gold, resources, and infrastructure – recorded the strongest growth of any category at 54%, albeit from a smaller base. Mortgage funds and global equities funds also outpaced the platform’s overall 19% growth rate over the comparison window.

By contrast, domestic Australian equities funds saw no growth but managed to maintain a 10% share, while fixed income fell 8% to drop to a 7% share. Private credit saw a particularly sharp fall of 26%, – a reversal Connolly attributes in part to negative media coverage of the sector.

“While it’s still 4% of the overall traffic, this is quite a marked change from our survey last year,” said Connolly. “Investor interest has shifted quite significantly for a number of asset classes.”

While acknowledging the ongoing Middle East conflict is likely to have further impacts on behaviour, Connolly stressed that investors need to remember that markets have weathered such shocks repeatedly throughout history and that the fundamental driver of long-term returns remains corporate earnings, not headlines.