Australian ETF Investors 2026: 7 Takeaways from the iShares ETF Insights Report

THE SHORT ANSWER

Interest in ETFs is running well ahead of action. In BlackRock’s 2026 iShares survey of 3,133 Australians, 16% own ETFs but 32% plan to invest in the next 12 months. What holds people back isn’t awareness so much as confidence: the fear of losing money, not knowing which ETF to choose, and worry about hidden fees. Each of those has a simple, practical answer.

16%of Australian adults own ETFs

32%plan to invest in ETFs in the next 12 months

55%have low knowledge of ETFs

72new ETFs listed on the ASX in FY26, a record

BlackRock’s iShares ETF Insights Report, published in August 2026, surveyed 3,133 Australian adults with YouGov in March 2026. It doesn’t cover fund flows or prices. It’s about people: who invests, who wants to, and what stops them. Here are the seven findings that stood out to me, and what I’d do about each.

1. The next wave is twice the size of today’s ETF investors

Twice as many Australians plan to invest in ETFs in the next year as own them today: 32% versus 16%. That’s a lot of first-time investors about to make their first decisions, often with little guidance.

The knowledge gap is wide. More than half of Australians (55%) have low knowledge of ETFs: 26% have never heard of them and another 29% have heard of them but don’t feel they understand them.

What helpsIf you’re starting out, begin with what an ETF is and how it works, then our ETF glossary for the jargon. You don’t need to know everything, just enough to understand what you own and why.

2. The biggest fear is losing money

For the next wave of investors, concern about market losses is the top barrier (39%). It’s just as high for people who already own ETFs (41%). Owning ETFs doesn’t make the fear go away.

BIGGEST BARRIERS TO INVESTING IN ETFs

Next-wave investorsCurrent ETF investors

Concern about market losses

39%

41%

Difficulty choosing ETFs

36%

41%

Hidden fees

31%

32%

Don’t understand ETFs

30%

33%

Source: iShares ETF Insights Report, Australia, August 2026. Next wave n=576; current investors n=474.

Markets do fall, sometimes a lot. The answer isn’t to avoid investing; it’s to have a plan for the falls before they happen.

What helpsThree things make falls easier to sit through. A diversified core, so no single company or sector can sink you. A cash buffer for money you’ll need in the next two to three years, so you’re never forced to sell low. And knowing the trend: ETFs in a long downtrend are where most big losses happen. Our ETF trend scanner shows which ETFs are in an uptrend, base or downtrend every week, and where money goes when markets crash explains what tends to hold up.

3. Choosing an ETF is hard, and getting harder

Among people who already own ETFs, difficulty choosing is tied with market losses as the top barrier (41%). That’s not surprising: the ASX added a record 72 new ETFs in FY26. More choice doesn’t make choosing easier.

Many of those funds overlap. Two ETFs with different names and issuers can own almost the same companies. VGS and BGBL, for example, overlap by more than 90%.

What helpsMost people don’t need many ETFs. A low-cost diversified core does most of the work, with a few satellites for what the core misses: see core and satellite investing and how many ETFs you should own. When you’re weighing two similar funds, our head-to-head ETF comparisons show the exact overlap, fees and trend side by side, and the overlap calculator checks your whole mix.

4. Worry about hidden fees

About three in ten investors, new and existing, worry about hidden fees (31% and 32%). ETF fees aren’t hidden, but they aren’t obvious either: the management fee is taken from the fund each day, so you never see a bill.

What helpsLook for the management fee (often called the MER) on the issuer’s page or in our profiles. On $100,000, the difference between a 0.04% and a 0.48% ETF is $440 a year. Also count brokerage, and the buy–sell spread on smaller funds. Our guide to comparing ETFs covers the eight things to check.

5. Cash is still king

Savings accounts are by far the most common financial product: 62% of Australians hold one, almost four times as many as hold ETFs. Cash has a job: it’s your emergency fund and your buffer. But the report points out that inflation has outstripped wage growth by around 0.5% a year on average since 2020, so money left in cash for the long term can quietly lose buying power.

What helpsGive every dollar a job. Money you need within a few years belongs in cash. Money for five years or more can usually do more in a diversified portfolio. We cover this in seven ETF investing lessons, starting with “cash is a position”.

6. Income isn’t just for retirees any more

More than a third of ETF investors (37%) already use income ETFs, and the report found investors aged 25 to 44 are the most likely to want income outside their job. Income ETFs are moving from a retirement tool to a cash-flow tool during working life.

What helpsA high yield isn’t the whole story. Check what the fund has actually paid, whether it carries franking credits, and whether the price is holding up. Our income ETF tracker compares 50+ income ETFs on yield, franking, distributions and trend, and franking credits and ETFs explains why franking matters.

7. Big gaps: women, and crypto ahead of ETFs

Women are nearly twice as likely as men not to invest at all (40% vs 24%). And more Australians own cryptocurrency (18%) than ETFs (16%), with crypto ownership highest among under-35s.

Neither is a judgement on anyone’s choices. But it does suggest many people are either sitting out, or starting with the most volatile asset rather than a diversified one.

What helpsIf you hold crypto, think of it as a small satellite, not the core. If you haven’t started, a single diversified ETF and a regular amount each month is a simple first step. How to invest in ETFs walks through it.

What confident investors do

The report lists the habits of the most confident investors. None of them are about picking the perfect ETF:

Understand the risks involved

45%

Diversify their investments

39%

Know how investing works

38%

Don’t panic when markets move

36%

Set aside money regularly

33%

Share of investors showing each behaviour. Source: iShares ETF Insights Report, Australia, August 2026.

That matches what I see with clients. Confidence comes from having a plan: knowing what each ETF is for, what you’ll do when markets fall, and when you’ll add more. That’s why we built our approach around three steps: build a core and satellite portfolio, follow market conditions, and buy in trend.

Not sure your ETFs fit together?
Check your overlap and the trend of every ETF you own in our free calculator, then get a free personalised review from Joshua Stega.

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Source: BlackRock Investment Management (Australia) Limited, iShares ETF Insights Report: From curious to confident, August 2026. Online survey of 3,133 Australian adults by YouGov, 10–23 March 2026. Figures are as reported by BlackRock. ETF Adviser is not affiliated with BlackRock or iShares. General information only; it doesn’t consider your objectives, financial situation or needs. ETFs named are examples, not recommendations. Past performance is not a reliable indicator of future performance.

Frequently asked questions

How many Australians invest in ETFs?

According to BlackRock’s 2026 iShares ETF Insights Report, 16% of Australian adults own ETFs and 32% intend to invest in ETFs in the next 12 months. The survey covered 3,133 adults in March 2026.

What stops Australians investing in ETFs?

The biggest barriers are concern about market losses (39% of would-be investors, 41% of current investors), difficulty choosing ETFs (36% and 41%), worry about hidden fees (31% and 32%) and not understanding ETFs (30% and 33%).

How many new ETFs listed on the ASX in FY26?

The report says the ASX added 72 new ETFs in FY26, the highest on record. See our list of new ETFs for the latest listings.

Do more Australians own crypto than ETFs?

In the survey, yes: 18% of Australians said they own cryptocurrency, compared with 16% who own ETFs. Crypto ownership was highest among people under 35.

How do I start investing in ETFs with confidence?

Start with what the money is for and when you’ll need it. Keep short-term money in cash, use a low-cost diversified ETF as your core, invest regularly, and have a plan for market falls before they happen. Check the overlap and trend of what you own before adding more.

Australians want ETFs, but don’t feel confident. Here’s how to fix that.