Competition among fixed interest fund managers has intensified in Australia with the launch of several new exchange traded funds (ETFs) by global firms.
An AUSIEX analysis of a large cohort of its data suggests that financial advisers are among the biggest users of the more than 70 fixed income ETFs available in Australia.
The AUSIEX analysis revealed a 10.65% increase in the number of trades year on year, with a 2.67% increase in traded value and 10.92% increase in the number of advised accounts trading domestic fixed income ETFs.
Total holdings in domestic fixed income ETFs were found to be 58.9% higher at the end of January 2025 (compared with the end of January 2024), with 33.78% more advised accounts holding these securities.
Advised accounts also appear to be allocating more to these securities proportionally. At the end of January 2025, the share of total fixed income holdings value for advised accounts on AUSIEX was 5.32%, up from 3.90% in at the end of January 2024.
The asset class accounted for around 19% of ETF buy trades for Baby Boomers to outstrip every other ETF strategy in that period, found AUSIEX.
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It also accounted for 11.4% of buy trades for advised Generation X investors over the year, ranking as the third most popular ETF strategy in that cohort.
By contrast, fixed interest did not feature among the top ETF strategies used by direct retail investors in any age group over that period, according to the AUSIEX data.
