Super funds have Wall Street to thank for a strong year, just not as good as 2024
The Australian – 20 January 2026
With increasing evidence that the majority of “active” funds fail to match index performance over time, the figures for the 2025 calendar year show the growing power of index-based funds in superannuation.
“It’s still early days for index investing in superannuation, but I would expect to see these funds start to feature more prominently in the 10-year figures in the near future,” SuperRatings insights manager Joshua Lowen said.
Mr Lowen at SuperRatings adds: “We need to call out that growth funds do very well in these markets but when markets fall, they will respond quickly.”
SuperRatings executive director Kirby Rappell said: “We expect 2026 to be a challenging environment for fund returns. Geopolitical tensions are once again rising and the inflation outlook in Australia suggests there will be little opportunity for interest rate relief over the coming 12 months.
“The new year is a good time for members to consider the level of ups and downs you are willing to tolerate and do a health check on your fund across performance, fees and insurance.”
