From 'power users' to 'all-in allocators' - how investors are using ETFs in 2026 (and their top products)

With over 2,500 responses, Livewire’s 2026 Listed Series survey is our biggest to date. With a dataset this size, we can draw some valuable insights into the moods, preferences, and behaviours of users of Exchange Traded Products (ETPs) in Australia.

Readers turn bearish

One of the standout results from the survey was the huge move to investor bearishness. While the audience differs slightly from our Outlook Series survey, the change in mood since December last year is stark. In our Outlook Series survey, more than two thirds of investors were Bullish, but just three months later, only 16% of respondents identified as bullish.

What’s striking is how little it has changed behaviour… so far. Despite the sharp move in sentiment, most respondents remain firmly long-term in their approach. That combination suggests investors are becoming more cautious, not reactive.

A second clear trend was the skew towards long-term holders. While the nature of ETPs generally would seem to draw long-term investors, more than 30x as many people identified as long-term holders versus short-term.

This reinforces a broader theme across the dataset: ETP investors are, overwhelmingly, strategic rather than tactical.

That has implications for how products are used. Rather than trading tools, ETPs are being treated as portfolio building blocks.

That’s the high-level view, but the more interesting insights emerge when you look at how investors are actually using these products.

Largest holding & concentration analysis

Vanguard Australian Shares Index ETF (ASX: VAS) is the undisputed #1 with 271 mentions – nearly double Betashares Australia 200 ETF (ASX: A200). Together with Vanguard Australian Shares High Yield ETF (ASX: VHY), they account for over a quarter of all valid ticker responses.

This level of concentration at the top end isn’t unusual, but it is telling. It suggests that while the ETF universe has expanded rapidly, investor behaviour hasn’t fragmented to the same degree. A relatively small number of core products still dominate portfolios.

There were 355 unique tickers mentioned. Despite that breadth, over 35% of respondents named one of the top five (VAS, A200, VHY, ASX: VGS, and ASX: IVV) as their top holding.

After removing incorrect entries (e.g. invalid codes, individual stocks, or offshore ETFs), 108 ETFs were mentioned by only one respondent.

All-in-one funds (ASX: VDHG, ASX: DHHF) show completely different investor behaviour. Although they're only 4% of responses by volume, nearly half their holders put >30% of their portfolio into a single fund. DHHF's mean allocation is 41%.

This is a fundamentally different use case. Where most investors use ETFs to build portfolios, this cohort is using a single product as the portfolio. That distinction matters, particularly when thinking about concentration risk and how investors respond to volatility.

Betashares Nasdaq 100 ETF (ASX: NDQ) holders are the most bullish cohort at 31% bullish – more than double the VAS holder bullish rate (12%). VanEck MSCI International Quality ETF (ASX: QUAL) is similarly bullish-skewing at 26%. On the other end, Global X Physical Silver (ASX: ETPMAG) holders are 57% bearish and are overwhelmingly medium-term holders.

That divergence shows how closely product choice and sentiment are linked. Investors holding growth-oriented or quality-focused exposures appear more constructive on markets, while those in defensive or alternative exposures are positioned more cautiously.

The concentration gap between core and satellite is sharp. Broad Aus equity holders have a 20% median allocation vs 5% for thematic/leveraged products and 7% for gold. High-concentration holders (>30%) use fewer product types – 79% passive ETFs but only 9% REITs – suggesting they've simplified their portfolio into a small number of high-conviction positions.

When separating responses by investors’ primary reason for using ETFs, some clear patterns emerge. VHY and Betashares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX) are over-represented among income investors, NDQ is over-represented among Growth investors. One surprising result though was seeing A200 under-represented among those looking for low fees, despite providing exposure to broadly the same assets, and A200 offering a fee of 0.04% vs 0.07% for VAS.

It’s a small gap in absolute terms, but it points to something larger. Brand perception still matters, even in a market that is often framed as purely cost-driven. Investors may say they prioritise fees, but reputation and familiarity continue to influence decision-making.

Vanguard’s reputation for low fees appears to persist, even when their product doesn’t have the lowest fees in the category.

The breakdown below highlights how preferences shift across different investor objectives.

The biggest takeaway from this, in my view, is the consistency across the list. Whether investors are focused on income, growth, diversification, or simplicity, they are largely drawing from the same core set of exposures: VAS, VHY, A200, NDQ, and VGS.

Concentration levels in a single holding were generally quite low, with less than 20% of respondents holding over 30% in a single ETP, and 50% of respondents holding 10% or less in their largest position.

Comparing high-concentration investors with low-concentration investors shows that Active ETF, LIC/LIT, and REIT users tended to be lower concentration, while passive ETF users were higher concentration. Low concentration users were also slightly more likely to be increasing their usage of ETPs.

Stepping back from the individual data points, a number of clear investor archetypes begin to emerge. These aren’t rigid categories, but they’re a useful way to think about how different investors are using ETPs.

Note: not every respondent fell neatly into one of these categories, so the totals don’t sum to 100%.

Core indexers (19%)

High-conviction passive investors using ETPs as their portfolio backbone. They're the most fee-sensitive group (50% prioritise expense ratio) and the most likely to care about tracking error (25%). Almost all are increasing usage.

“I want low-cost, diversified index exposure as my core holding and I’m steadily adding to it.”

Top holdings:

• VAS
• VHY
• VGS
• A200
• IVV
• NDQ
• DHHF.

Prefers: Passive ETFs (85%), Active ETFs (31%).

Looking for: Diversification (66%), low fees (46%).

Select ETPs based on: Underlying assets (62%), low expense ratio (50%).

All-in allocators (12%) 

This group has gone the furthest – ETPs are literally their entire portfolio. Highest concentration in single holdings (mean 30% in their top ETP), strong VDHG/DHHF presence suggests they like all-in-one solutions. Smallest group but deepest commitment.

“My entire portfolio (ex-cash) is in listed products. I’m a true believer in the ETP wrapper.”

Top holdings:

• VAS
• A200
• VHY
• VGS
• NDQ
• IVV
• VDHG
• DHHF.

Prefer: Passive ETFs (76%), Active ETFs (40%).

Looking for: Diversification (57%), Growth (40%).

Select ETPs based on: Underlying assets (62%), low expense ratio (50%).

Access seekers (32%) 

This is the largest segment and they use ETPs tactically to fill gaps. They index toward GOLD and WIRE alongside the usual VAS/A200 – they're looking for exposures they can't get elsewhere. More likely to be medium-term holders (29%) and more bearish than average (46%).

“I use ETPs selectively – to access markets or asset classes I can’t reach or don’t have expertise in.”

Top holdings:

• VAS
• A200
• VHY
• NDQ
• IVV
• VGS
• GOLD
• WIRE.

Prefer: Passive ETFs (57%), Active ETFs (33%).

Looking for: Diversification (48%), access to markets or strategies (47%).

Holding period: Long-term (67%).

Power users (17%) 

This group uses an average of 3.6 product types and are the most brand-conscious group (38% care about manager brand – vs ~23% elsewhere). They're also the segment increasing their holdings the most (61% increasing). QUAL and WAM appearing in their top holdings reflects a more active, research-driven approach. These are your most engaged readers and likely your heaviest content consumers.

“I use passive, active, complex, LICs, and REITs – I want exposure everywhere and I care about who manages my money.”

Top holdings:

• VAS
• VHY
• VGS
• NDQ
• QUAL
• IVV
• A200
• WAM

Prefer: Passive ETFs (86%), Active ETFs (82%).

Looking for: Diversification (68%), access to markets or strategies (59%).

Select ETPs based on: Underlying assets (78%), low expense ratio (45%).

The survey highlights a market that is evolving in structure, but relatively stable in behaviour.

Investors have more choice than ever before, but continue to anchor their portfolios around a familiar set of core exposures. At the same time, sentiment has turned more cautious, even as positioning remains long-term.

For product providers and asset managers, that creates a more complex challenge. Innovation continues to expand the opportunity set, but earning a place in portfolios still requires trust, clarity of purpose, and a role that fits alongside those core holdings.