Business News

SMSFs driving jump in adviser ETF usage

Financial adviser exchange-traded fund (ETF) usage has doubled in the past year, almost exclusively driven by their SMSF clients.

BlackRock Australia head of retail Mark Oliver said recently-completed internal research revealed how the industry had adapted to the increasing number of ETFs in the local market.

“The use of ETFs by advisers has more than doubled in the last 12 months, especially for SMSF clients,” Oliver told selfmanagedsuper.

“It’s been particularly notable in the last year, so that doubling of usage is showing a maturing of the ETF industry and ETF usage.

“Also, I think there’s been an increase in investor awareness and the education message is getting through.”

In addition, he said the same increase in ETF usage was also reflected in platform use.

“If we go back a few years, ETFs were extensively used by direct clients, but what we’re seeing is that increasingly advisers, dealer groups and platforms are starting to facilitate the use of ETFs to a very strong effect,” he said.

“The fact that dealer groups and researchers are adding ETFs to their approved product lists and platforms have made great strides in opening up the access to ETFs to their advisers with SMSF clients is very positive.”

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