ETFs opens doors to range of assets
Managed accounts can use exchange traded products (ETP) as a building block with multiple applications, according to BetaShares.
BetaShares director of institutional business and national accounts Vinnie Wadhera said ETPs are being applied in three different ways, including core exposures, access to specific strategies or asset classes, and dynamic asset allocation.
Speaking at the Institute of Managed Account Providers (IMAP) event, Wadhera said for core exposures, exchange traded funds (ETFs) can be used alone to create balanced portfolios or can be combined with active managers.
ETFs may also open doors to strategies or asset classes which may otherwise be difficult to apply.
"We've seen advisers adopt exchange traded products which seek to provide enhanced equity yield performance or portfolio hedging exposure, which would be difficult to obtain via other means," Wadhera said.
"We've also seen interest in specific asset classes such as currency and commodities, for the same reason."
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