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ANZ expects strong SMSF interest in new ETFs

Newly launched ANZ ETFS Management believes its suite of six exchange-traded funds (ETF) will be an attractive proposition for the SMSF market.

The business, announced on 26 May, is a joint venture between ANZ and exchange-traded product provider ETF Securities.

The six funds –ANZ ETFS S&P/ASX 100, S&P/ASX 300 High Yield Plus, S&P 500 High Yield Low Volatility, Physical Gold, Physical Renminbi and Physical US Dollar – were expected to be listed on the ASX within two to three weeks.

“As we know, SMSFs are big users of ETFs currently, so it’s a natural market for us,” ANZ ETFS head of distribution co-head Danny Laidler said at a media briefing last week.

“SMSF investors are looking for lower-cost access to markets and we definitely believe they’re looking for income products.

“I think our high-yield Australian domestic and high-yield United States ETFs will be very interesting products for SMSF investors, as with the currency and gold ETFs, because it’s all about low-cost ways to access markets that perhaps they weren’t looking at previously.”

Laidler said SMSF investors were becoming more aware of the benefits of portfolio diversification.

“So this product set will definitely support that,” he said.

“The other interesting part of our bow is that we’re working with Etrade, which obviously has a big client base of SMSF investors, so we expect strong market interest from that sector.”

The move marked the first entry of a major financial institution into the Australian ETF market.

“Now is the perfect time to enter the ETF market – it’s up 60 per cent over the last year and April was the 15th consecutive month of funds under management (FUM) growth,” Laidler said.

“These are fantastic figures, but the ETF market is still a small part of the investment landscape in Australia, less than 1 per cent, so I honestly believe that ANZ entering the ETF market is a game changer for the whole industry.”

ANZ ETFS will focus on achieving research house ratings, and being added to platforms and financial planning groups’ approved product lists, as well as on adviser education.

Laidler revealed the ANZ ETF initiative was set to cover the Asia-Pacific region and products would be launched in Asia in due course.

According to the “BetaShares Australian ETF Review”, the Australian ETF sector hit $17.7 billion in FUM in April.

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