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
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
Volatility in US markets means currency is becoming a critical decision factor in Australian investors’ ETF selection this year.
Clime Investment Management is overhauling the selection process for its APLs, with managing director Michael Baragwanath describing the threat of a product failure affecting clients as “pure nightmare fuel”.
Global X will expand its ETF range of exchange-traded funds next month with a low-cost Australian equity product as it chases ambitions of becoming a top issuer of ETFs in Australia.
