The recent surge in ETF investments, with $5.5 billion flowing into the market in July 2025, is driven by a rebound in investor sentiment and a shift towards 'risk-on' assets like global equity ETFs. This indicates growing investor confidence and a preference for growth opportunities.

The recent surge in ETF investments, with inflows doubling to $5.5 billion in July 2025, is driven by a rebound in investor sentiment and a shift towards 'risk-on' assets like global equities. This indicates growing investor confidence in the market.

Investors are moving away from gold-based ETFs because they believe gold is overpriced compared to the growth opportunities available in local and international equity markets. This shift is part of a broader trend towards riskier assets as investor confidence rebounds.

Global equity ETFs are popular because they attracted $2.52 billion in inflows in July 2025, reflecting a 'risk-on' sentiment among investors. This suggests that investors are optimistic about global market opportunities and are seeking growth assets.

In July 2025, global equity ETFs saw the highest inflows, attracting $2.52 billion. Australian equity-based ETFs followed with $998 million, and Australian Fixed Income ETFs also saw significant interest with $798 million in inflows.

Interest rate cuts that began in February have increased investor interest in Australian Fixed Income ETFs, which saw inflows of $798 million in July. Investors are keen to lock in higher rates on bonds and benefit from capital appreciation as bond prices rise.

Interest rate cuts that began in February have increased investor interest in Australian Fixed Income ETFs, as investors seek to lock in higher rates and benefit from potential capital appreciation as bond prices rise.

The top ETFs for cash inflows in July 2025 were Vanguard Australian Shares Index ETF (VAS), Vanguard MSCI Index International Shares ETF (VGS), iShares Core S&P/ASX 200 ETF (IOZ), BetaShares NASDAQ 100 ETF (NDQ), and iShares S&P 500 ETF (IVV).

The top ETFs for cash inflows in July 2025 include Vanguard Australian Shares Index ETF (VAS) with $405.6 million, Vanguard MSCI Index International Shares ETF (VGS) with $332.1 million, and iShares Core S&P/ASX 200 ETF (IOZ) with $318.7 million.

Investors are moving away from gold-based ETFs, which saw significant outflows in July 2025, because they believe gold is overpriced compared to growth opportunities in local and international equity markets.

Cash-based ETFs are seeing reduced inflows due to the lower interest rate environment, which has led investors to seek higher returns in equities and other growth-oriented assets.

Commodity and mixed asset ETFs saw a boom in July 2025, with inflows exceeding $100 million. Mixed-asset ETFs, in particular, recorded a dramatic rise to nearly $200 million, indicating a growing interest in diversified investment options.

Commodity and mixed asset ETFs experienced a boom in July, with inflows exceeding $100 million. Mixed-asset ETFs, in particular, saw a dramatic rise to nearly $200 million in inflows, indicating a growing interest in diversified investment strategies.

Cash-based ETFs experienced a decline in inflows, dropping to $255 million in July 2025 from $314 million in June. This suggests that investors are moving away from cash-based options in favor of equities and other growth assets.

The ETFs with the largest outflows in July 2025 were gold-based, including Global X Physical Gold (GOLD) with -$88.4 million, Perth Mint Gold (PMGOLD) with -$71.9 million, and BetaShares Gold Bullion - Currency Hedged (QAU) with -$49.6 million.

The 'risk-on' sentiment implies that everyday investors are becoming more confident and are willing to take on more risk by investing in equities and other growth assets. This shift could lead to higher potential returns but also comes with increased market volatility.