ASX ETF Boom: 70 New Funds in FY26 as CGT Rewrite Reshapes Investor Math

The CGT change also hits property directly. Real estate investors who relied on the discount for longer-duration holds now face a steeper effective tax rate on disposals. Early data from real estate platforms suggests listing volumes have dipped since July 1, though it is too soon to call a trend.

For the ASX itself, the ETF boom is a bright spot. Annual turnover from ETFs now accounts for a growing share of exchange revenue. Thematic funds – silver, AI, oil – have attracted retail inflows, and they provide a vehicle for the kind of momentum trading that kept the meme-stock cycle alive in other markets. Whether that turns into a recurring risk depends on how aggressively issuers market leveraged or single-stock ETFs.

A recent survey found one in five young Australians hold ETFs in their portfolio. That share is likely higher among active traders on forums like HotCopper. The demographic skew matters because younger investors tend to trade more frequently, which amplifies the tax-efficiency advantage of ETFs under the new regime.

The big question is whether the CGT change depresses IPO activity over the next 12 months. Founders and early employees who would have sold down positions after a 12-month holding period now face a smaller after-tax return. That could reduce the incentive to list early, or push companies toward trade sales instead. The first test comes in August, when the 14 scheduled IPOs actually price.