SMSFs continue to boost $18.6bn ETF market
With SMSF assets now accounting for almost half of all assets held within exchange-traded funds (ETFs), SMSF allocations have helped boost the Australian ETF market to a new record of $18.6 billion.
According to ETF provider BetaShares, the ETF market grew by $900 million during May, with 60 per cent of growth coming from market movements and the remaining 40 per cent from new money inflows.
BetaShares managing director Alex Vynokur said May was also a record month for product development, with 20 new exchange-traded products (ETPs) launched onto the ASX.
Mr Vynokur said ETF take-up continues to be strong among SMSF investors.
“While SMSFs were early adopters of the basic ‘buy and hold’ index ETF, they are starting to take more interest in some of the tactical funds that have recently become available,” he told SMSF Adviser.
“We expect SMSF investors to continue to make up a large percentage of the ETF market, as the range of products on offer continues to grow and they are given more options to construct a low-cost, diversified retirement portfolio using ETFs.”
Mr Vynokur said transparency and cost tend to be two of the highest valued components for SMSF holders when choosing an investment.
ETFs continue to provide those characteristics “across a growing range of exposures including currency, commodities, fixed income and international equities markets”, he said.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.