Advised investors made a strategic shift towards increased diversification and defensive strategies in the first half of 2025, adding international equity exchange traded funds and fixed income exposures to their portfolios to navigate the uncertain investment environment of 2025.

AUSIEX data from the first half of the 2025 calendar year, shows advisers relied on a handful of blue-chip stocks and a broad range of Exchange Traded Funds (ETFs) to build clients’ portfolios over the past six months. The latter included Australian stock indices, US and European indices as well as fixed income ETFs.

The top buy trades by advised investors in that period were Woodside Energy Group Ltd (WDS), followed by BHP Group Ltd (BHP), CSL Ltd (CSL), Macquarie Group Ltd (ASX: MQG), and Westpac Banking Group (WBC). Their most sold stocks were Commonwealth Bank of Australia (CBA), Telstra Group Ltd (TLS), Woolworths Group Ltd (WOW), and Fortescue Ltd (FMG).

Commenting on the trend towards global diversification amongst advised clients, Mr Chris Hill, National Manager of Strategic Relationships at AUSIEX says:

“The first half of 2025 has shown a clear divergence in the strategies employed by advised investors. While traditional blue-chip stocks like BHP and CSL remain key components of many portfolios, the growing emphasis on ETFs, both domestic and international, signals a shift towards diversification in the face of uncertainty”. 

“The volume of trading by advised investors was down 9% compared to the second half of the 2024 calendar year, as these investors tended to hold stocks and trade less”, says Mr Hill. 

Despite this, the number of their ETF trades was up by 30% compared to the first six months of 2024.

International exposure: A clear strategy to hedge against domestic risk

The popularity of international ETFs over the half – such as the VanEck MSCI International Quality (Hedged) ETF (QHAL), Vanguard MSCI Index International Shares ETF (VGS), and the iShares S&P 500 AUD ETF (IVV), suggest a growing appetite among advised investors for global exposure. 

“With Australian stocks largely considered fully priced, this move reflects a tactical decision to diversify away from an over-concentrated domestic market”, says Mr Hill. “Advisers are expressing a preference for well-diversified, globally-minded strategies versus relying solely on popular large-cap Australian stocks – where increasingly stretched valuations are a feature”.

CBA and Wesfarmers among ‘most sold’ stocks

The most sold stocks of the first half of 2025 were CBA, TLS, and FMG. Advised investors sold down their positions in these large-cap stocks signalling a shift away from these companies as concerns over their valuations mount. These sales align with the broader sentiment that domestic equities, particularly in the financial and consumer sectors, are increasingly overpriced.

Advised SMSFs with over $3 million also showed a preference for trimming positions in these same names, highlighting a clear desire to move towards safer, and more diversified strategies.

In the case of CBA, the selling suggests that even blue-chip stocks may have reached their peak for now, with investors looking for more growth-oriented or defensive assets.

Balancing risk: Adding high-conviction picks to defensive positions 

An additional strategy to leaning into global exposures and defensive income ETFs, was to pair those more defensive choices with tactical high-conviction positions on US stocks.

BetaShares Geared US Equity Fund (GGUS) and the Global X Ultra Short Nasdaq 100 Complex ETF (SNAS) were among advisers’ top buys in the first half of 2025, indicating that many sought to capture upside from the continued strength of US tech and growth stocks. 

Both strategies offer leveraged or concentrated exposure to US equities, suggesting a willingness to take calculated risks in select areas while maintaining a diversified, income-generating base elsewhere in the portfolio. 

Commenting on the strategy of combining defensive and high-growth assets, Mr Hill says:

“It's a barbell approach – the idea of balancing out volatility with stable defensive assets – and reflects both caution and conviction in a divided and uncertain market environment”. 

AUSIEX’s Advised clients top 20 buys of first half of 2025

Similarly, the most sold in the first half of 2025 included Woolworths, ASX, Transurban, Xero, Magellan Global Fund Open Class and Betashares Geared Australian Equities Complex ETF.

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