With the release of ETF Securities’ Q4 ETF Landscape report, Kanish Chugh, head of distribution at the ETF solutions provider, said the Australian market had doubled its assets under management over the past three years to more than $73 billion.

This year has seen a shift, from ETFs dominated by financial intermediaries such as consultants, planners and brokers, to more investors looking for cost-effective and easy access to the market.

“This year has seen a shift with a huge jump in self-directed usage as investors look to take control of their portfolios and look for new opportunities,” Mr Chug said.

But the entry of new platforms offering commission-free ETF trading is expected to shape the behavior of retail investors.

"While ETF trading volumes may have settled down from March peaks, ETF usage is expected to continue to grow, as is the range of investment options available in Australia," Mr Chugh said.

"The popularity of new trading platforms with an ETF slant, such as Superhero or Pearler, is further supporting ETF penetration."

Concerns about the COVID pandemic saw the average daily trading peak more than double to $772.7 million in March.

As of the end of October, there were 216 listed products on the market, with 17 new listings in the last quarter. At the same time, 11 ETFs were delisted.

Technology has been a big focus, with investments in FAANGS or technology sector funds popular with both long-term and short-term investors.

"Exchange-traded leveraged products have surged in popularity as investors look to take advantage of the opportunities presented by more volatile markets this year," Mr Chug said.

"Safe assets are also popular, with gold-backed ETFs performing exceptionally strongly over the year."

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting mainly on banking, financial services and wealth.

Prior to joining the team in 2018, Sarah worked in commercial media and produced stories for a current affairs program on public radio.

You can contact her at [email protected].