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ETF Investing: 20 Years of Value Creation

Our latest research explores some of the changes in the ETF industry over the past 20 years, revealing the increased adoption by younger investors, the role of ETFs played in navigating investors out of the current global pandemic, and how investors have voted with their wallets to endorse ETFs as their tool of choice.


Today’s ETF Investor


The search for diversification has been the unwavering driver of ETF growth by new investors.  

53%

Of new ETF investors are under the age of 39.


$62,000

The average initial investment in ETFs by new investors.


71%

Of current ETF investors use an Self Managed Super Fund (SMSF) to manage their retirement savings.


More Choice Than Ever Before


Looking ahead, ETF Investors are looking to gain exposure in equity, high growth or high yield ETFs. 

82%

Of current ETF investors prefer to use index-tracking ETFs compared to active ETFs. 


90%

Of ETF investors currently buy/sell their ETFs directly via an online broker platform.


50%+

Of current ETF investors under the age of 39 are looking to invest in ESG (Responsible Investing) ETFs over the next 12 month.  



Long-term ETF investors said ETFs were the best product to take advantage of market downturns, over international shares and Australian shares.

58%

Of current ETF investors have increased their allocation of ETFs as a result of the coronavirus pandemic. 


68%

Of Millennial ETF investors increased their ETF allocation as a result of the coronavirus pandemic.


45%

Of Baby Boomer ETF investors increased their ETF allocation as a result of the pandemic.


About the Research


State Street Global Advisors, together with Investment Trends, conducted a quantitative online survey of 2,163 Australian investors in June and July 2021. The Australian survey was to assess investors evolving drivers for using ETFs and investment intentions. The search for diversification has been the unwavering driver of ETF growth by new investors.  


Learn more about 20 years of ETF investing in Australia.