Dual channels to drive ETF trends


By Krystine Lumanta

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Self-managed superannuation fund (SMSF) exchange-traded fund (ETF) investors and a surge in new ETF investors would drive the key themes in the ETF market this year, according to Investment Trends.

In November 2013, ETF investors holding ETFs through their SMSF dipped to 45 per cent, compared to 48 per cent in November 2012, according to the BetaShares/Investment Trends “November 2013 Exchange-Traded Funds Report”.

In addition, the study found 79,000 Australian investors planned to make their first ETF investment in the next 12 months, compared to 54,000 last year.

“The interesting trend here is that historically about half of ETF investors were SMSFs, but now that proportion has declined slightly,” Investment Trends senior analyst Recep Peker told a media briefing this month.

“This hints to a greater number of mainstream investors entering the ETF market; it’s no longer just the highly sophisticated investors.”

In an interview with financialobserver, Peker said he expected new drivers coming from both investor segments.

“SMSFs were a key driver in this space and they will probably continue to be a key driver, but on top of that there are now additional people coming in,” he said.

“It’s not just SMSFs anymore.”

The report also found there was an information gap in relation to ETFs for next wave investors, who had a wider need for knowledge.

The material they wanted included advanced ETF topics, how to use ETFs in the current environment, case studies and education seminars.

The report was conducted from September to December 2013 and was based on responses from 10,421 investors and 734 advisers.

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