The share of financial advisers using ETFs for their clients has increased last year, according to the latest BetaShares Investment Trends ETF report.
About 47% of advisers used ETFs in 2017, the report shows. This number has since grown to 53%.
A further 16% of the adviser base is considering using ETFs in the next 12 months, according to the report.
"Advisers are facing unique business challenges as we head further into 2019, with increased scrutiny on the costs of advice, transparency and client best interest duties," Betashares chief executive Alex Vynokur said.
"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."
The report added half of the advisers who recommended ETFs to their clients indicated it improved their financial outcomes.
It also helped advisers save time - with roughly 45% saying using ETFs allow them to service a greater number of clients.
The report says there is room for advisers to play a bigger role in their clients' ETF investments.
"Only 21% of investors indicated that an adviser played a role in their most recent ETF investment - a number that has remained relatively stable over the last three years," it said.
Overall, BetaShares and Investment Trends expect 116,000 new investors to come to the ETF market in the next 12 months.
Reinvestment rates are strong with over half intending to make another ETF investment in the next year.
The total FUM could reach $50-55 billion by the end of the year, Vynokur said.
The industry stands at $44.4 billion at February end, growing 21% in twelve months.
Exchange traded products attracted $397 million in net inflows in February and almost a third of it went into smart beta products, according to VanEck.