Financial planners call for better ETF education
An overwhelming majority of financial planners and brokers agree bond exchange traded funds (ETFs) need to be better explained before they are accepted and they can recommend them to clients, according to a survey commissioned by Russell Investments.
The survey found that more than half of financial advisers and brokers were ready to embrace bond ETFs, with 36.5 per cent seeing this product as a substitute for term deposits.
Director of ETFs at Russell Investments Amanda Skelly said bond ETFs have experienced significant growth, accounting for 18 per cent of total ETF assets.
"However, this result definitely shows we as an industry need to do more to educate people in Australia about the benefits for advisers, brokers and the end investor," she said.
When selecting which of their client segments they viewed as most suited to bond ETFs, brokers and advisers gave the most votes to self-managed super funds with 77 per cent, while post-retirees came in second (61 per cent) followed by high net worth individuals (42 per cent).
The survey was conducted by CoreData on behalf of Russell Investments, involving 104 participants.
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