Investors pile into income ETFs to shelter from tax changes

Australian investors are on the hunt for income and are piling into exchange-traded funds that are focused on dividends, bonds and cash amid higher interest rates and looming changes to capital gains tax.

Money flowing into cash and fixed-income-focused ETFs more than doubled in June to $1 billion from $494 million in May, according to Betashares. That accounted for 30 per cent of all Australian ETF flows for the month, and is the highest allocation to cash and fixed income since November.

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