Cash and fixed-income ETF flows hit $1B in June, 30% of all inflows, as tax changes and rate rises push investors away from growth strategies.
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Australian investors shifted $1 billion into cash and fixed-income ETFs in June, more than double the $494 million in May. The month-old capital gains tax overhaul reshaped the incentive to hold growth assets, Betashares said.
The flows accounted for 30% of all Australian ETF inflows for the month, the highest allocation to income-focused funds since November, the ETF provider said.
The tax changes take effect next financial year. They tax all capital gains from asset sales at a minimum 30% after inflation adjustment. Under the old system investors paid tax on half the gain at their marginal rate, often well below 30%. That difference, combined with three RBA rate rises this year, drove a rotation out of high-growth sectors like technology and into dividend-paying stocks and bond ETFs.
Not all ETF categories benefited. Gold ETFs saw heavy outflows in June after a long rally stalled. The broader Australian ETF market attracted $61.6 billion in the 2026 financial year, up 48% from the prior year. Roughly $30 billion has already been pulled in the current year, Betashares said.
ETF providers said the income shift is expected to persist as the new CGT regime settles in.
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