7 ETFs Aussie Investors Are Leaning Into Right Now

Why It Matters

These ETFs give Australian investors a low‑cost, rules‑based toolkit to diversify, earn higher income, and navigate geopolitical and market volatility, reshaping portfolio construction away from costly, concentrated stock picks.

Key Takeaways

• Geopolitical tensions boost demand for oil and defense ETFs.
• Australian investors shift from global to domestic equities amid volatility.
• Factor ETFs like QOZ and AQLT deliver low‑cost outperformance.
• HYLD offers 30% higher yield using dividend‑trap avoidance signals.
• Tech ETF gains inflows as investors chase dips in 2% sector.

Summary

The Livewise Listed series interview with Beta Shares’ Cameron Gleason spotlights seven Australian‑focused ETFs that are attracting investor capital in 2026. Gleason explains how geopolitical unrest has funneled money into oil‑based and defense‑contractor ETFs, while broader market volatility is prompting a swing back to domestic equities.

Beta Shares emphasizes low‑cost, rules‑based factor strategies. The QOZ “dynamic tilt to value” ETF, weighted by economic size rather than market cap, has risen 11% over the past year by rotating from banks to miners. The AQLT Australian Quality ETF outperforms the benchmark by more than 3% since inception, leveraging a quality screen that still includes top‑tier banks. HYLD targets roughly 30% higher dividend yields than the broad market, using market‑signal filters to avoid dividend traps and paying monthly distributions. Even the niche Australian tech sector, representing just 2% of the market, saw strong February inflows as investors bought the dip.

Gleason cites concrete performance metrics: QOZ’s 11% annual gain, AQLT’s sustained outperformance, and HYLD’s monthly payout cadence as evidence that factor ETFs can deliver superior risk‑adjusted returns. He also notes that direct‑stock portfolios, like his mother’s CBA‑heavy holding, expose investors to concentration risk, whereas diversified ETFs provide cost‑effective exposure with lower trading impact.

For Australian investors, the takeaway is clear: integrating factor‑driven ETFs—whether for value, quality, income, or sector exposure—offers a systematic, low‑fee path to capture market upside while mitigating volatility and concentration risk.

Original Description

For those who have been playing the game of markets for decades, think back to the world before ETFs. The ways to express a view on change were far more limited - and frustrating.

If war broke out, you were largely confined to ASX-listed companies, often exposed to second-order effects. If commodities like gold or oil were surging, the same constraints applied, along with all the company-specific risks that came with them.

Today, the landscape looks entirely different. Through ETFs, investors now have myriad ways to gain real-time exposure to the themes shaping markets, far more efficiently. And that matters, because markets themselves are more dynamic than ever.

As Betashares’ Senior Investment Strategist Cameron Gleeson puts it:

“Markets can be incredibly dynamic and change on a dime, and that can really catch you off guard.”

From geopolitical shocks to shifting sector leadership, investors are being forced to rethink how they build and manage portfolios, and the tools they use are becoming just as important as the views they hold.

That shift is visible, with flows responding quickly to macro developments, while structural features of the Australian market, from the dominance of banks and miners to the persistent difficulty of active outperformance, are pushing investors toward more systematic and rules-based approaches.

Whether it’s expressing tactical views, enhancing returns through factors, or building more resilient income streams, the opportunity set has expanded. The edge now lies in how effectively investors use it.