ETFs are hot property for retail investors and SMSFs, and for good reason – they’re cheap, provide easy access to diversification and can be traded like any other stock. But ASIC’s recent review of the sector has identified some key concerns.
Consider for a moment how in a reasonably fast and sustained way Xero Accounting Software, CommSec Online brokerage, Exchange Traded Funds (ETF’s) and Mortgage Comparison sites, have started to change the landscape and ‘wedge’ themselves between you and the client. But how far can they take it, how far will they edge into our traditional domain?
It’s almost impossible to consider investing in an asset class without touching on the subject and relative merits of active versus passive products. Ultimately, there is no ‘right’ answer, as it will depend on each investor’s own circumstances.
There’s no denying the attraction investors currently have to ETFs. Market growth continues to surge (up to nearly $10 billion in late 2013) and as new products are launched, growth shows few signs of slowing.
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