Market turmoil prompts investment in ETFs: Van Eck
A torrid start to 2016 for the equities markets is prompting investors to search for low-cost options and transparent portfolios, Van Eck Global reports.
Van Eck Australia managing director, Arian Neiron, said the sharemarket's shakey start to the year was fuelling a surge in investment in exchange traded products (ETPs), and was likely to ensure investment in exchange traded funds (ETFs) will surpass the $21.34 billion invested in 2015.
"Market falls in the first weeks of 2016 have made front page news, highlighting investor fear," he said.
"ETF investors have always had the benefit of diversity that overcomes single company risk. In Australia we have seen more investors seeking to diversify away from the large miners and banks that have led the market down.
"In this environment strategic beta is set to be a bigger part of investor's portfolios as it better meets their needs in achieving cost effective outperformance.
"The standard market-measuring indices invented in the days of steam engines were not designed with investment performance in mind.
"New strategic beta indices are proving their worth and investors are now paying greater attention to what an index offers, particularly in light of 2015 returns."
Recommended for you
The alternative investment manager has signalled its intentions to repackage an existing fund into a second private equity vehicle, targeting both listed and unlisted opportunities.
The acquisition of Mason Stevens by Adamantem Capital has reached completion, as the wealth platform looks to increase investment into its services for Australian wealth practices.
Platinum Asset Management and VanEck have both announced name changes to multiple of their ETFs to clarify their complexity.
Active ETFs are gaining traction in Asia-Pacific as wealth managers seek to blend the low-cost fees of passive with active management.
