More education needed on smart beta
Smart Beta investing is set to become a mainstream investment choice, as most believe it will outperform active strategies but more education is needed, according to VanEck's survey of financial advisers and brokers.
VanEck's survey found that over 90 per cent of financial professionals would consider smart beta strategies in the future, while 89 per cent believed smart beta strategies would outperform, or perform in line with active strategies.
Only 37 per cent of financial professionals were using smart beta strategies in their portfolios, while two thirds of professionals said they did not invest in smart beta as they did not know enough.
VanEck Australia managing director, Arian Neiron, said smart beta strategies would become more prevalent in portfolios in the future, however there needed to be more education to ensure advisers and their clients had adequate information to confidently invest in them.
The survey highlighted that outperformance, ease of trading and diversification were the main reasons people were motivated to invest in smart beta strategies.
Neiron noted, that smart beta ETFs listed on the ASX had increased from five to 29, over the past five years, while total smart beta strategies assets were over $2.1 billion.
Recommended for you
Australian equities manager Datt Capital has built a retail-friendly version of its small-cap strategy for advisers, previously only available for wholesale investors.
The dominance of passive funds is having a knock-on effect on Australia’s M&A environment by creating a less responsive shareholder base, according to law firm Minter Ellison.
Morningstar Australasia is scrapping its controversial use of algorithm-driven Medalist ratings in Australia next year and confirmed all ratings will now be provided by human analysts.
LGT Wealth Management is maintaining a neutral stance on US equities going into 2026 as it is worried whether the hype around AI euphoria will continue.
