SMSFs utilising ETFs
Half of all investors using exchange-traded funds (ETFs) are doing so via their self-managed superannuation funds (SMSFs), according to research house Investment Trends.
Investment Trends chief operating officer Eric Blewitt said not only had the company's research revealed modest growth in the number of SMSF trustees utilising ETFs, but it had also pointed to an intention for further use of the products.
"Bucking the negative trend in traditional managed fund investments was the modest growth in the use of ETFs, with more SMSF investors who already own ETFs planning to invest in more," he said.
"And there is also growth in new and expected investment for those investors who don't currently own ETFs."
With 33,000 SMSF investors now having ETFs within their investment portfolios, the SMSF Report stated that the ETFs that had been shown greatest favour by SMSF trustees were broad market international and Australian sharemarket ETFs.
"Diversification, low cost and access to overseas markets were the most common drivers of ETF investments," it said.
"So while blue chip shares remained dominant in most SMSF portfolios, investor sentiment and confidence in the sharemarket has driven an increased focus on defensive allocations with franked dividends, capital preservation and income being sought in current and future investment choices."
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