The top 20 stocks most popular with investors this year

As market uncertainty and volatility persist, advisers are urging investors to look beyond familiar stocks and embrace diversification across asset classes and geographies. However, these cautionary messages are resonating differently with various types of investors.

A portion of investors doubled down on familiar stocks in the first six months of 2025, while others added Exchange Traded Funds (ETFs) to their holdings.

Commonwealth Bank was among the most-traded stocks for investors this year.Credit: Oscar Colman

Retail investors broadly piled into established miners such as BHP Group (BHP), Fortescue (FMG), Woodside Energy Group (WDS) and Pilbara Minerals (PLS) in early 2025 – but self-managed super funds (SMSFs) with more than $3 million in assets pursued an alternative approach, buying broad sector and geographic exposure via select ETFs.

Among retail investors generally, the trend to buy miners and take profits in some bank stocks was a persistent feature in the first half of 2025. Mining stocks, buoyed by strong commodity prices, were a popular pick in the first half of 2025. BHP was the most bought stock over the period.

They also leaned heavily into well-known blue-chip stocks such as FMG, WDS, and Commonwealth Bank of Australia (CBA) in the first six months of 2025. These stocks have traditionally formed the backbone of retail portfolios, often driven by familiarity and a perceived stability – along with high dividend yields.

Yet, despite strong returns from these sectors, some analysts are cautioning that concentrated exposure to such expensive stocks could be risky given the broader economic context and stretched valuations.

Advisers are picking up on those cues: our data shows they steered their clients away from an over-reliance on a handful of large-cap Australian stocks, encouraging allocations to global equity ETFs.

Strategies to navigate macro uncertainty have extended into defensive allocations to hybrids, subordinated debt, and investment grade credit ETFs such as Betashares Hybrids and VanEck Sub Debt ETF – satisfying investor demand for income with downside protection.

With nearly half the top buys among advised clients being ETFs, advisers appear to be leaning into a preference for low-cost, liquid, while pulling back from individual high-multiple growth names like Xero (XRO) and Woolworths Group (WOW).

Other listings offloaded in greater numbers during the period were ASX Ltd (ASX), Transurban Group (TCL), Magellan Global Fund Open Class (MGOC) and Betashares Geared Australian Equities Complex ETF (GEAR).

The message is clear: diversification, particularly through ETFs, is no longer just a strategy reserved for institutional investors.

Building on the growing ETF trend, another noteworthy development is the increased use of geared and tactical ETFs. Popular choices included Betashares Geared US Equity and Global X Ultra Short Nasdaq, which suggests that advisers are now selectively expressing market views using ETFs, rather than individual stocks. This shift further underscores a more strategic, nuanced approach to portfolio construction.

In a similar vein, SMSFs with over $3 million invested are also reflecting this preference for portfolio diversification. AUSIEX data shows many are allocating to international equities through ETFs, while simultaneously adding Australian mining stocks such as BHP and WDS, possibly as a play for dividend income and potential commodity upside.

The increasing allocation to ETFs among sophisticated investors, including those SMSFs with substantial portfolios, underscores a shift towards a more deliberate focus on diversification.

By holding assets across various sectors – defensive sectors like healthcare which include stocks like CSL Ltd (CSL) – and gaining international equity exposure through ETFs, these SMSFs have likely positioned their portfolios to better weather any market volatility compared to retaining only domestic exposures.

As investors navigate a landscape of uncertainty and increasingly stretched valuations, the message is clear: diversification, particularly through ETFs and global assets, is no longer just a strategy reserved for institutional investors. It has become essential for more investors looking to protect and grow their wealth in this challenging market environment.

Chris Hill is the National Manager of Strategic Relationships at AUSIEX.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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