Australian investors continue to back global markets over local shares, with artificial intelligence, income strategies and overseas equities attracting the biggest inflows through June.
While June is traditionally a quieter month as investors wrap up the financial year, Australians still invested $3.5 billion into ETFs, helping the industry record its strongest financial year ever with $61.6 billion in net inflows during FY26.
Our latest ETF Market Scoop for June 2026 breaks down the data.
So, where is the money going?
1. Global shares remain the top choice
International markets continue to dominate investor portfolios.
Broad global share ETFs attracted $674 million in June, while US-focused ETFs brought in another $541 million. In comparison, Australian share ETFs received $248 million, suggesting many investors remain more optimistic about opportunities offshore than at home.
Much of that confidence continues to be driven by strong earnings from US companies and the ongoing AI investment boom.
2. Investors still want AI exposure
The AI theme remains one of the market's biggest investment stories.
Semiconductor ETFs enjoyed their strongest month on record, attracting $137 million in June as investors continued to back the companies building the hardware powering artificial intelligence.
Interest also extended beyond chipmakers. Investors continued buying ETFs focused on AI infrastructure, large technology companies and copper miners, reflecting confidence that demand for data centres, computing power and electrification still has room to grow.
3. Income is becoming increasingly important
Generating regular income is becoming a bigger priority for Australian investors.
Index-based equity income ETFs recorded another monthly inflow record, attracting $309 million in June. At the same time, subordinated debt ETFs received $228 million, showing investors are looking for attractive income opportunities outside traditional cash and government bonds.
The trend suggests many investors are placing greater value on reliable income, particularly following the proposed capital gains tax reforms announced in the Federal Budget.
4. Gold falls out of favour
Gold ETFs experienced their weakest month on record in June, with investors withdrawing $252 million as higher bond yields and a stronger US dollar reduced the appeal of the precious metal.
While that represents a significant shift in sentiment, it comes after several years of exceptionally strong gains for gold.
5. Small companies are making a comeback
After years of lagging behind large-cap stocks, smaller companies are beginning to attract renewed interest.
Small-cap shares have outperformed large-cap stocks in the US this year, while Australian investors have steadily increased allocations to small and mid-cap ETFs. The improving outlook reflects growing confidence that the next phase of the market rally could broaden beyond the handful of mega-cap technology companies that have dominated returns in recent years.
What does this mean for investors?
The latest ETF flow data suggests Australian investors remain optimistic but are becoming more selective.
Rather than simply chasing last year's winners, investors are building portfolios around long-term themes such as AI, global growth and income generation, while also beginning to diversify into areas like small-cap companies and value investing.
If June is any guide, Australian investors may continue to look beyond the local market in search of growth opportunities, while balancing that with strategies designed to generate income in a changing investment landscape.
