It’s being talked about as one of the most volatile reporting seasons in years, with advisers generating a surge in trading activity that punished company-specific earnings misses in favour of diversified Exchange Traded Funds (ETFs) and fixed income exposure.

AUSIEX data shows sharp rotations out of single-stock exposures into diversified ETFs in the 23 trading days from the beginning of reporting season on 28 July 2025 to the end of August 2025. Over that period, over 200 ASX-listed companies reported earnings, and overall trading volumes on the AUSIEX platform had surged 18.7% compared with the same trading period in the month prior.

Advisers stayed in the market, but showed a preference for ETFs over equities, including broad exposure strategies in fixed income. Global equity plays such as the Vanguard Australian Shares Index ETF (ASX:VAS), iShares S&P 500 ETF (ASX:IVV), BetaShares NASDAQ 100 ETD (ASX:NDQ), and Vanguard MSCI Index International Shares ETF (ASX: VGS) were also popular. Direct equity outflows jumped 68.6% over the prior month, while ETFs inflows rose 5.5%.

“AUSIEX data shows trading activity during earnings season was much higher than recent years,” says Mr. Chris Hill, National Manager, Strategic Relationships at AUSIEX. “With net trades up almost 40% compared to the corresponding reporting period last year, advisers chose to lean into the volatility and to position clients defensively to ride out the inevitable bumps”.

Selling bias

Any earnings shocks were met with aggressive selling. AUSIEX data shows adviser trading volumes rose 22.5% over the period. The selling was most pronounced on 18 August 2025 and 19 August 2025, when advised accounts recorded their deepest net outflows of the season, and the buy-sell ratio slumped to 0.6 (a buy-sell ratio of 1.0 indicates balanced flows while 0.6 indicates net selling). 

Healthcare giant CSL Limited (ASX: CSL) had its largest one-day decline on record, falling nearly 17% on 19 August 2025, after reporting plans to cut 3,000 jobs globally and demerge its Seqirus vaccine unit, while BlueScope Steel (ASX: BSL) shares fell sharply on 18 August 2025 after reporting a collapse in annual profit and an impairment charge for its US division. 

At the same time advisers were reducing concentrated stock exposure, they sought diversification in ETFs. Fixed income strategies across all security types drew the strongest inflows, with the highest flows by value directed to Australian Dollar-denominated fixed income, while global equity strategies were the second-highest traded by net value. The BetaShares Australian High Interest Cash ETF (ASX: AAA) and BetaShares Active Australian Hybrids Fund (Managed Fund: HBRD) were among the most popular fixed income exchange-traded products over the period. 

SMSF preferences

Overall, trading by advised investors rose 22.5% over the 23-day earnings period, and was up more than 26% compared with the same time last year.

Among advised accounts trading on AUSIEX’s platform, retirees and boomers dominated. SMSFs were also active, often punching above their weight in terms of trading volumes, relative to their share of accounts. 

Among the top buys for advised SMSFs were names such as data centre operator NextDC (ASX: NXT), Macquarie Group (ASX: MQG), CSL (ASX: CSL), Northern Star Resources (ASX: NXT), alongside income plays including the Vanguard Australian Corporate Fixed Interest Index ETF (ASX: VACF), which offers diversified exposure to investment grade Australian corporate bonds. By contrast, major banks were among the most heavily sold; Westpac (ASX: WBC), Commonwealth Bank (ASX:CBA); and National Australia Bank (ASX: NAB), all facing outflows across advised and retail accounts. 

For both cohorts of investors, trading showed that while earnings season can be a roller-coaster for individual stocks as demonstrated by CSL’s record fall and BlueScope’s profit miss, anchoring in defensive, diversified strategies can be a steadier path through the volatility. 

To find out more about how to optimise your ETF trade execution, contact your Account Manager or a member of our Business Development team.