With the big four banks looking fully valued, investors may be looking for alternative options in the ASX 200 financials sector.
Despite Macquarie Group Ltd (ASX: MQG) raising its price targets for the big four banks last week, the broker continued to value them as neutral or overvalued.
However, there's another subsector within the ASX 200 financials sector that has been growing rapidly and remains positioned to continue this trajectory.
Let's explore this opportunity.
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Self-managed super funds on the rise
According to The Australian Financial Review, the number of self-managed superannuation funds (SMSF) is growing at the fastest pace in eight years.
The total balance of SMSFs recently exceeded $1 trillion, with the average balance rising from $990,000 as of 30 June 2025.
Last financial year, around 42,000 SMSFs were created, a significant jump from 33,000 the year before.
Notably, there was a 49% increase for the 49 to 59 age bracket, and 37% growth for the 30 to 44 age bracket.
What has driven this?
Behind this trend is a greater number of Australians seeking greater control over their retirement savings.
This has motivated them to switch from a super fund to an SMSF, where they can control their investments.
The average size of a newly established SMSF fell by 29% from $515,000 to $363,000 last year, reflecting younger Australians' desire to take control of their finances earlier in life.
ASX 200 financials stocks positioned to benefit
ASX 200 wealth management platforms Netwealth Ltd (ASX: NWL) and Hub24 Ltd (ASX: HUB) are strong beneficiaries of this trend.
According to the Australian Financial Review, financial advisors are transitioning clients out of super funds to these platforms to facilitate the shift.
Netwealth and HUB24 have been growing at a rapid rate as they take market share from superannuation funds.
As noted by the AFR, wealth platforms used by financial planners to manage and administer their clients' investments attracted $36 billion of inflows in the year to March 2025. Hub24 said this was the highest for the industry since 2008.
Are Netwealth and Hub24 shares a buy?
Netwealth and Hub24 shares have incredible long-term track records.
Netwealth is up 106% in 5 years, while Hub24 shares have soared 490%.
Macquarie currently has a price target of $33.85 on the stock. Netwealth also offers a dividend yield of 1.26%. Given that Netwealth shares closed at $30.57 yesterday, this suggests around 11% upside from here.
Meanwhile, Macquarie has assigned Hub24 a price target of $103.30. Hub24 also offers a dividend yield of 0.54%. Given that shares closed at $103.32 yesterday, this suggests they will remain flat over the next year.
Between the two, Netwealth is more compelling, with double-digit returns projected.
