The report indicated that diversification was the key reason for SMSF investors using ETFs, with 77 per cent of these investors listing this as the top reason.

This was followed closely by access to overseas markets at 65 per cent and their low cost at 53 per cent.

Some of the other reasons for SMSFs using ETFs included liquidity, access to specific types of investments or sectors and avoiding the risks associated with individual stock exposure, according to the report.

The report also indicated that the use of ETFs by financial advisers has grown from 47 per cent in 2017 up to 53 per cent in 2018, with an additional 16 per cent considering using ETFs in their practice over the next 12 months.

BetaShares chief executive Alex Vynokur said that advisers are facing unique business challenges as they head further into 2019, with increased scrutiny on the costs of advice, transparency and client best interest duties.

“We predict ETFs to continue to be adopted by planners, along with greater uptake of ETF model portfolios as advisers seek to create efficiencies in their businesses, and lower costs for clients,” Mr Vynokur said.