Following a bumper year in 2021, exchange-traded funds (ETFs) are now more popular than ever Down Under.
A great starting point for new investors, these funds offer exposure to specific areas of the market, like an index or sector, and can be traded like any normal stock on an exchange.
They’re basically a cheat code for all of us who don’t have an economics degree.
Given their accessibility, it’s little surprise ETFs enjoyed stellar growth in 2021, a year when thousands of Aussies reflected on their finances and decided to take their first plunge in the stock market.
At the start of 2021, Australia’s ETF industry had around $95 billion under management. By the end of the year, money invested in ETFs reached new highs of $136.9 billion—that’s a massive leap of 44% in just 12 months.
Ok, much of that growth was down to ETF assets appreciating in value, but there’s also been a big uptake in new investors: there are now around 1.7 million Aussies with money in ETFs, representing investor growth of 33% for the year.
The data points to the growing number of Australians taking their financial futures into their own hands and seeking to create long-term wealth. While the stock market is never an easy ride (not even with ETFs), that’s still a trend we love to see.