ETF usage in model portfolios shoots up
Exchange-traded fund (ETF) usage in model portfolios is exploding, with OneVue noticing that ETF investment on its unified managed account platform has more than tripled over the last nine months.
More than half of all of OneVue's ETFs are now being held in separately managed account (SMA) portfolios, according to chief executive of strategic relationships Brett Marsh.
Investors are allocating more funds to growth assets over defensive assets, and a portion of that money is going into the ETF space, Marsh said.
"The growth that we have experienced at OneVue since July last year has largely been on the back of the increase in ETFs that are taken up in SMAs," Marsh said.
Marsh said ETF growth within SMAs would increase as multi-asset class SMA models increase in popularity. They provide more choice and flexibility, he added.
However, there was still also ETF growth in OneVue's managed funds wrap, Marsh said. ETF volumes have recently surpassed volumes on OneVue's managed funds wrap.
OneVue will continue to add ETFs on to its unified managed account (UMA) as they grow in the market, Marsh said.
There are approximately 70 ETFs available on the OneVue UMA.
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