Super, Side Hustles and ETFs

On paper, Australians have one of the biggest pension systems in the world. In reality, a lot of people feel like passengers in super and gamblers with everything else. Surveys of retail investors show a mix of caution and risk‑taking: extra cash going into offset accounts and high‑interest savings, but also growing experiments with crypto and exchange‑traded funds.[20][21]

Research in 2025 found retail sentiment toward equities “unusually low” compared with history, despite markets trading near highs. Many small investors were scarred by rate shocks, housing stress and cost‑of‑living pressures, choosing to pay down debt or hold cash rather than chase returns. At the same time, trading‑platform data show consistent flows into broad‑market ETFs and a long tail of speculative positions in small caps and digital assets. The split is basically this: safety inside super and mortgages, risk in small parcels outside.[21][22][20]

On the safer end, Australian‑listed ETFs tracking the ASX 200, global indices and diversified bond portfolios have attracted steady inflows, especially from younger investors who want set‑and‑forget exposure but do not trust active stock‑picking. Products like VAS (ASX 300), IOZ (ASX 200), A200 (ASX 200) and global trackers such as VGS or IVV have become default building blocks. The appeal is simple: instant diversification, low fees, transparent holdings, and no need to follow every company announcement.[21]

Crypto sits on the other side. Exchanges report hundreds of thousands of Australian accounts, with many users treating Bitcoin, Ethereum and smaller tokens as high‑risk satellite positions around more traditional holdings. Volatility is extreme; double‑digit monthly moves are routine. Regulatory settings are still evolving, with ASIC enforcement actions and global exchange failures underscoring that there is no guaranteed backstop. For all the talk of digital gold and decentralisation, the honest description is speculative: potential for outsized gains, real risk of blow‑ups.[20]

Side hustles have become a kind of shadow investment strategy. Instead of—or alongside—financial products, many people are putting time and money into micro‑businesses: online stores, content channels, tutoring, trades services, flipping goods. Returns vary wildly, and few have formal legal or tax advice, but the logic is familiar: if traditional wages and savings do not move the needle, try creating something on the side. Surveys of retail investor behaviour show that for a chunk of the population, “investing” now includes both financial assets and informal enterprises.[23][24][20]

From a risk perspective, the hierarchy is simple even if behaviour is not. Super in diversified funds, broad ETFs and paying down high‑interest debt sit at the conservative end. They will not make anyone rich overnight, but they are aligned with long‑term market returns and reduced interest costs. Concentrated bets on single small caps, options and crypto sit at the other end. They can deliver big wins, but they can wipe out savings fast, and the odds of consistently picking winners are low.[25][26]

The blunt point is that outcomes are unknown. Nobody can guarantee that today’s big Aussie or global ETFs will outperform, or that crypto will either collapse or mainstream. What is knowable is structure: diversification reduces the chance of catastrophic loss, leverage increases it, and chasing stories without understanding the risk is closer to gambling than investing.[26][25][20]

For ordinary Australians in 2026, the smartest move is not finding the next miracle asset, but recognising where each dollar sits on the risk spectrum: super and broad ETFs at one end, speculative tokens and single names at the other, and side hustles somewhere in between, depending on how much you are prepared to lose if they fail.

Sources (links)
https://www.moneymanagement.com.au/retail-investors-display-unusually-low-sentiment-equities/[20] https://www.newscentre.com.au/releases.html?id=1040982&headline=asx-200-ends-2025-higher-as-sectors-diverge-retail-investors-cal[21] https://www.salvationarmy.org.au/red-shield-appeal/the-cost-of-living-crisis-in-australia/[22] https://investability.com.au/unpacking-investor-trends/[23] https://www.morganstanley.com/Themes/outlooks[25] https://www.livewiremarkets.com/wires/the-big-risks-investors-should-be-paying-attention-to-in-2026[26]