ETF investors bypassing advisers
Exchange traded fund (ETF) investments have shot up 50 per cent in the last year, but the bulk of the traffic is still not driven by advisers, a report shows.
The number of ETF investors now tops 102,000 in Australia, according to the Investment Trends/BetaShares ETF report, with almost half (46,000) held by self-managed superannuation funds (SMSFs).
The figure represents a 50 per cent surge in the year to November 2013.
Adviser use of ETFs has grown 28 per cent to 33 per cent in the same period.
However, the proportion of investors who were directed to an ETF by their financial adviser has remained stagnant, year-on-year, at 26 per cent.
“It’s interesting to note there is still a considerable gap between self-directed and adviser-influenced ETF investing,” BetaShares managing director Alex Vynokur said.
He saw it as an opportunity for planners to get more involved in clients’ ETF investment choices.
The report, based on research of more than 10,000 investors and more than 700 advisers, predicted further growth in 2014, with 79,000 non-ETF investors showing some interest in the vehicle.
“Given the expectation of continued strong growth in the sector, keeping up with investor demand for education is vital,” Vynokur added.
Recommended for you
Research by Morningstar has found fixed income funds are bucking a general trend around managed fund fee dispersion with a smaller fee dispersion compared to equity ones.
As investors seek to diversify their portfolios, the naming of bond labels has broadened out to include green, social and impact bonds, according to the annual RIAA report.
Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million.
Metrics Credit Partners is expanding its private credit fund range with a managed fund for retail investors following investor demand.
