SMSFs putting trust in ETFs
Self-managed superannuation funds (SMSFs) have quadrupled their investment in exchange-traded funds (ETFs) over the last five years, the latest Class SMSF Benchmark Report has revealed.
Over that period, SMSF investment in ETFs jumped from $4.2 billion to $19.6 billion. The portion of SMSFs using ETFs also increased, from 7.9 per cent to 18.9 per cent.
SMSFs also represented a significant portion of ETFs investors at one third, holding more than 50 per cent of total ETF asset value.
The key drivers for ETF investment was diversification, cost-effectiveness and access to international equities.
“The continued growth of ETF investment by SMSFs indicates that investors are increasingly aware of the importance of diversification. The investment opportunities delivered by ETFs provide SMSFs with exposure to a broader mix of assets than were previously available, allowing them to expand their investment horizons,” Class chief executive, Kevin Bungard said.
AUTHOR
Hannah Wootton
Recommended for you
The corporate regulator’s crackdown on SMSF auditor misconduct continued in the third quarter, with ASIC taking action against 11 auditors who were all referred by the Australian Taxation Office.
A Perth adviser who stole over $1 million from his clients has received a jail sentence in Perth District Court today, with the judge reprimanding his lack of remorse for the crime.
Financial advisers are being urged to expand their skills with specialist SMSF training as the volume of assets held in SMSFs reaches $876 billion.
The firm has announced revenue growth of almost 30 per cent to $33.7 million in its annual results and will be seeking to reach $100 million by 2030, doubling its previous target.
