More education needed on smart beta
Smart Beta investing is set to become a mainstream investment choice, as most believe it will outperform active strategies but more education is needed, according to VanEck's survey of financial advisers and brokers.
VanEck's survey found that over 90 per cent of financial professionals would consider smart beta strategies in the future, while 89 per cent believed smart beta strategies would outperform, or perform in line with active strategies.
Only 37 per cent of financial professionals were using smart beta strategies in their portfolios, while two thirds of professionals said they did not invest in smart beta as they did not know enough.
VanEck Australia managing director, Arian Neiron, said smart beta strategies would become more prevalent in portfolios in the future, however there needed to be more education to ensure advisers and their clients had adequate information to confidently invest in them.
The survey highlighted that outperformance, ease of trading and diversification were the main reasons people were motivated to invest in smart beta strategies.
Neiron noted, that smart beta ETFs listed on the ASX had increased from five to 29, over the past five years, while total smart beta strategies assets were over $2.1 billion.
Recommended for you
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
