ETF investors bypassing advisers
Exchange traded fund (ETF) investments have shot up 50 per cent in the last year, but the bulk of the traffic is still not driven by advisers, a report shows.
The number of ETF investors now tops 102,000 in Australia, according to the Investment Trends/BetaShares ETF report, with almost half (46,000) held by self-managed superannuation funds (SMSFs).
The figure represents a 50 per cent surge in the year to November 2013.
Adviser use of ETFs has grown 28 per cent to 33 per cent in the same period.
However, the proportion of investors who were directed to an ETF by their financial adviser has remained stagnant, year-on-year, at 26 per cent.
“It’s interesting to note there is still a considerable gap between self-directed and adviser-influenced ETF investing,” BetaShares managing director Alex Vynokur said.
He saw it as an opportunity for planners to get more involved in clients’ ETF investment choices.
The report, based on research of more than 10,000 investors and more than 700 advisers, predicted further growth in 2014, with 79,000 non-ETF investors showing some interest in the vehicle.
“Given the expectation of continued strong growth in the sector, keeping up with investor demand for education is vital,” Vynokur added.
Recommended for you
With active ETFs becoming the latest choice as fund managers target the retail audience, their high fees may be a detractor as research finds investors are shunning those priced any higher than 50 bps.
The possibility of a dissenting vote from shareholder L1 Capital has led Platinum Asset Management to scrap its conversion plan for the $450 million Platinum Capital LIC into an ETF.
Family office Lederer Group has made an off-market takeover bid for ASX-listed Elanor Commercial Property Fund, with chair Paul Lederer taking exception at the firm’s lack of accountability, oversight and transparency.
Janus Henderson is actively seeking to partner with private wealth firms in Australia as it looks to expand its number of strategic partnerships, as well as focus on retirement income product development.
