SMSFs remain bullish on ETF investments
A recent survey indicates that ETF usage by SMSFs remains strong, with one in six SMSF investors now holding ETFs in their fund.
A BetaShares ETF report, in partnership with research company Investment Trends, shows that the number of SMSFs investing in ETFs through their SMSF increased by 5,000 in the past 12 months, up to 105,000 investors in total.
Approximately one in six SMSFs invest in ETFs, and around a third of all ETF investors are SMSFs, the report said.
“We are seeing diversification, low cost and access to overseas markets as the three top drivers for investing in ETFs among SMSF and individual investors,” the report said.
“In addition, investors cite liquidity and convenience as other key reasons for choosing ETFs as an investment vehicle.”
The report also indicated that there have been marked changes in demographics among ETF investors as the industry becomes younger, and more mainstream.
“While the early adopters of ETFs were older, more sophisticated investors, this demographic is changing rapidly,” the report said.
“The average age of those who started investing in ETFs in the last 12 months is now 42, significantly younger than an average age of 56 among those who started investing in ETFs more than five years ago.”
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.