Livewire Markets

7 ETFs Aussie Investors Are Leaning Into Right Now

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.