New research shows ETF, SMSF slowdown
While ETF use remains strong among SMSF investors, the percentage of investors holding ETFs via their SMSF is falling.
New research from BetaShares and Investment Trends indicates that while the number of SMSF investors holding ETFs via their SMSF has increased from 54,000 in April 2014 to 83,000 in October 2015, the proportion of ETF investors holding ETFs via their SMSF has dropped from 45 per cent to 41 per cent in that same period.
This is a continuation of a steady downwards pattern since May 2011, when 52 per cent of ETF investors held the ETF via their SMSF.
Still, the report found strong demand for ETFs from retail and SMSF investors, with 71 per cent indicating they would consider re-investing in ETFs in the next 12 months.
The research also found that diversification remains a “primary reason” that individual and SMSF investors use ETFs.
However, for the first time since the report was published in 2008, access to overseas markets has become the next most important reason individual investors seek out ETFs, overtaking low cost.
The report is based on the responses of 9,418 investors and 676 financial advisers.