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Global uncertainty and advisers’ growing penchant for ETFs and managed accounts are a welcome boost for Aussie equities in 2026.

- Matthew Wai writes.

Last year was nothing if not volatile, with US President Donald Trump at the heart of much of the uncertainty, stirring the pot of geopolitical tensions, including imposing trade policies and tariffs on much of the world, including Australia.

However, domestically, the economy also grappled with a slower-than-expected pace of interest rate cuts, with only three imposed in 2025, and the local market was inevitably affected as confidence waned.

There is also a structural theme emerging across the ETF and managed account markets to support investment in domestic shares.

As adoption of managed accounts continue to increase along with record inflows to ETFs in 2025, these become valuable tools for investors and financial advisers to personalise investment portfolios, influencing Australian equities' year ahead.

Fidelity International portfolio manager Zara Lyons highlights that 2025 was a good reminder that the market rarely moves in a straight line, but notes that Australian equities have collectively provided "solid" returns, with some sectors even outperforming their benchmarks.

Throughout the year, Australian equities delivered periods of volatility, yet the asset class delivered a solid outcome overall; the S&P/ASX 200 Price Index was up 6.8% while dividends lifted total returns to over 10% for the year.

"That was a solid outcome given the backdrop of tariffs, a more fragmented global economy, and a rate-cutting cycle that arrived more slowly than many expected," Lyons says.

"... sectors that outperformed the ASX 200 index included rate-sensitive sectors such as financials and industrial cyclicals, in addition to materials, as investors sought real asset exposure."