The latest data from the 2024 Second Half Australia Online Investing Report highlights that these two asset classes now make up 20% of online investor holdings. This marks a notable three percent increase over the past half-year.
The report, which surveyed 11,625 participants, suggests a growing appetite for diversification, as 37% of online investors now include ETFs in their portfolios, up from 31%. Additionally, 34% have branched into international equities, underscoring a trend towards global investment strategies.
Yiğit Günhan, a Senior Analyst at Investment Trends, sheds light on this momentum: "This data reflects a strong wave of confidence among Australian investors." He attributes this shift to heightened investor optimism and an expectation of achieving a 6.3% annual capital return on domestic stocks, a modest rise compared to previous expectations.
Further analysis points to a rise in market participation, with 1.33 million Australians executing at least one online cash equity trade in the year leading up to November 2024, an increase of 50,000 traders since May 2024. The original article, reported by Yasmine Raso, captures the significant trends in this space.
"With sentiment at a 10-year high and returns expectations climbing, dormant investors are re-entering the market in historically high numbers," Günhan comments. He identifies this shift as a sign of the robust adaptability of Australia's retail investing environment.
This pivot towards ETFs and international equities suggests that investors are looking for efficient, cost-effective strategies to strengthen their portfolios while capitalizing on global market opportunities.
Despite these positive trends, the report draws attention to a considerable knowledge gap regarding trading costs and foreign exchange fees. A notable 18% of investors were unaware of the additional costs imposed by platforms dealing with international equities.
Günhan highlights the importance of transparency: "The results show that greater fee transparency is crucial for building trust." He notes that platforms offering clear fee disclosures are more likely to attract investors in a competitive market where costs are a significant consideration.
