Australian investors poured nearly $7 billion into exchange-traded funds in September, with total ETF investments on track to reach a record $400 billion, according to Betashares’ 2026 ETF Review cited in a recent analysis.
The review, reported by money contributor Nicole Pedersen-McKinnon, shows the monthly figure pushing total ETF assets towards an unprecedented level. The analysis attributes the surge to taxation changes that have ended negative gearing for all but new property builds, making property investment less attractive.
ETFs are bundled investments in a particular industry or market that trade like regular shares, offering cheap and diversified access even for novice investors. The largest ETF providers in Australia include Vanguard, Betashares, iShares and VanEck.
Analysis
Why This Matters
- Australian investors are moving capital from property into market investments, reshaping the country’s investment landscape.
- Tax policy changes are directly influencing where money flows, with potential knock-on effects for the housing market.
- The record ETF inflows highlight growing demand for low-cost, diversified investment vehicles.
Background
The Australian government ended negative gearing for all but new builds, reducing the tax benefits of property ownership. Combined with easy access to ETFs, many investors are turning to index funds. Betashares’ 2026 ETF Review captures this acceleration.
What to Watch
- Whether the monthly inflow continues and total ETF assets break through the $400 billion mark.
- How market volatility tests the strategy that a five-year investment horizon can smooth out fluctuations.
- Any further tax changes that could redirect investment flows again.
Checked
9 claims in this story checked against 1 source: 7 supported.
Show each claim
- SupportedAustralians poured nearly $7 billion into ETFs in September—about $7 billion a month.WA Today - Latest News: “in September, Aussies poured nearly $7 billion into ETFs, according to Betashares’ latest 2026 ETF Review.”
- SupportedTotal ETF investments are on track to reach a record $400 billion.WA Today - Latest News: “That means pretty soon a record $400 billion will be invested.”
- Partly supportedNegative gearing has already ended for all property builds except new ones.WA Today - Latest News: “As the shine comes off property investing thanks to negative gearing ending for all but new builds, market investments are looking more attractive.”
- Not in the sourcesThe analysis attributes the ETF inflow surge to taxation changes that make property less attractive.WA Today - Latest News: “As the shine comes off property investing thanks to negative gearing ending for all but new builds, market investments are looking more attractive.”
- SupportedTax changes are making market investments look more attractive.WA Today - Latest News: “As the shine comes off property investing thanks to negative gearing ending for all but new builds, market investments are looking more attractive.”
- SupportedThe September ETF figure comes from Betashares’ 2026 ETF Review, cited by Nicole Pedersen-McKinnon in her analysis.WA Today - Latest News: “in September, Aussies poured nearly $7 billion into ETFs, according to Betashares’ latest 2026 ETF Review.”
- SupportedETFs are bundled investments in a particular industry or market that trade like regular shares.WA Today - Latest News: “They are bundled investments in a particular industry or market, and you buy and sell them like regular shares.”
- SupportedETFs offer cheap, diversified access even to novice investors.WA Today - Latest News: “And ETFs allow even the most novice investor cheap, easy and diversified access.”
- SupportedVanguard, Betashares, iShares and VanEck are among Australia’s largest ETF providers.WA Today - Latest News: “The largest manufacturers of ETFs in Australia are Vanguard, Betashares, iShares and VanEck.”