SMSF appetite for ETFs rebounds

Cash being handed to one person from another.

The latest research has found SMSFs want to keep investing in ETFs.

SMSF demand for exchange-traded funds (ETF) has resumed following a substantial decline in 2016, the latest industry research has revealed.

The “2017 Vanguard/Investment Trends Self-Managed Super Fund Reports” found that in the next 12 months, 125,000 SMSFs intend to invest in ETFs, with 80,000 of them intending to reinvest in ETFs.

In 2016, 99,500 SMSFs intended to invest in ETFs, with 61,500 of them intending to reinvest.

“Whatever SMSF trustees are experiencing with ETFs and whatever ETFs are delivering to them, it’s working because they want to keep investing in ETFs,” Investment Trends head of wealth management research Recep Peker said.

“So for anyone servicing this market, it’s becoming increasingly relevant to be able to help SMSFs out with their ETF investments.

“In addition, there are 45,000 out of the 125,000 SMSFs – recovering from 38,000 out of 99,500 in 2016 – that are planning to make their first ETF investment in the next 12 months.

“So SMSFs are still a key driver of the ETF market and they appear likely to continue doing so.”

The report also found among SMSFs intending to invest in ETFs in the next 12 months, appetite is highest for offerings providing access to passive international equities.

The research was based on online surveys conducted between February and March.

Responses from 3020 SMSF investors, 479 SMSF financial planners and 945 SMSF accountants were analysed.

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