ETFs still only a small part of SMSF allocations
While growing in popularity, Exchange Traded Funds (ETFs) have yet to attract significantly firm allocations within self-managed superannuation funds (SMSFs), according to Multiport Technical Services director, Philip La Greca.
"ETFs are starting to get a little bit of traction," he said.
"We're currently preparing our next survey and one of the things we did notice is that they're starting to be a bit more heavily used."
However, according to La Greca, ETFs still aren't significant in terms of SMSFs' overall asset pool.
"So in the international sector, which is only about 8 per cent of the overall, about 4 per cent of that is now in ETFs," he said.
"That's 4 per cent of 8 per cent - so [it's] still very small but it's interesting that the trend is happening.
"Now one of the things we want to monitor, and will do as time progresses, is whether that international exposure to ETFs is going to come at the expense of direct equities or at the expense of managed funds."
For La Greca, that question had yet to be clearly answered.
"But it's the transparency issue that is the big element," he added.
"So there's a big possibility of SMAs (separately managed accounts) and MDAs (managed discretionary accounts) becoming more used in the sector, particularly around model portfolios.
"And it's that need for transparency that's going to accelerate the issues for managed funds in this space."
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