A Wall Street-style shakeup of Australian ETFs is coming, according to Webull
In Australia, ETFs are synonymous with passive investing. In the US, they’re anything but, as investors pump their portfolios with leverage and shorts.
The fast-growing ETF market in Australia is poised for its next transformative phase as investors increasingly seek risk and chase volatility in US markets.
Global trading platform Webull reports that its Australian investors are primarily investing in the US via exchange traded funds which allow them to gear or short some of Wall Street’s most volatile stocks.
“In Australia, ETFs are very much a buy and hold proposition where you use them to passively track the index or gain some thematic exposure but in the US it’s completely different,” Webull Securities Australia CEO Rob Talevski told Capital Brief.
Investors in short funds stand to make bumper profits from falls, while geared or leveraged funds attempt to multiply any gains.
