Australia’s ETF industry saw significant growth in 2016, and 2017 looks set to continue this trend, driven especially by younger generations who prefer self-directed investment strategies.
Tag Archives | Exchange Traded Funds
There is a remarkable range of ‘ethical’ ETFs on the global stage, but all is not what it seems when the covers are pulled down.
Exchange traded products have had another strong year of growth in 2016. Their popularity with investors, both in Australia and globally, is driving innovation and it will continue in 2017.
Not all ETFs are created equally, and it’s worth looking under the bonnet. Among many possible differences, the domicile of the fund can have broader implications.
The transparency of the index structures underlying ETFs allows a deeper analysis of the market exposures in what seem like similar funds, and surprising differences are revealed.
The five main types of smart beta ETFs are all represented on the ASX, bridging the gap between active and passive funds at an attractive price point and grabbing market share.
Australian investors may be wary of the European share market with Greece and Brexit in the news, but there’s a good investment and diversification case, with access now made easier by Europe equity ETFs listed on the ASX.
The latest Exchange Traded Funds Report highlights the growing popularity and demand for ETFs from investors and advisers. It also flags an opportunity for actively-managed exchange traded funds in the coming year.
A global survey of ETF trends shows the products and distribution methods are changing, including for active managers, and the high growth rates are expected to continue.
Although ETFs and LICs are growing in popularity, managed funds are far from disappearing. The future of wealth management will likely include strong demand for all three investment structures.
Fundamental indexing is now well-established in Australia, but has recently underperformed cap-weighted indexes. What is the longer-term outlook and rationale?
This ease with which retail investors can now invest in Exchange Traded Funds should not disguise the need to follow some simple rules for better execution and improved prices.
When Exchange Traded Products that track international markets are priced on the ASX, the closing price of the underlying offshore market often varies from the opening price here.
In Australia, fund manager performance is most often assessed on pre-tax returns. But a low portfolio turnover can potentially provide better after-tax returns relative to a high turnover actively managed fund.
One benefit of ETFs for investors is their tradability – being able to buy or sell at any time through the ASX just like an ordinary share. But this leads many investors to mistakenly evaluate their liquidity in the same way.
Australia’s economy has long had to cope with structural change, which hasn’t stopped quality companies from generating wealth for investors. But with increasing complexity, picking winners and losers will become harder.