State Street Global Advisors (SSGA) has expanded the number of platforms carrying its exchange-traded fund (ETF) model portfolios with their addition to Hub24 Invest and Hub24 Super.
The four ETF model portfolios were already available through Praemium and BT Panorama and their addition to the Hub24 platform, which currently has $15 billion in funds under administration, follows the growth in ETF use in recent years, SSGA said.
SSGA head of SPDR ETF Asia-Pacific distribution Meaghan Victor said the latest “SPDR ETFs/Investment Trends Managed Accounts Report” indicated the use of managed accounts had doubled in the past five years and advisers were recommending ETF model portfolios in increasing numbers.
“The addition of the State Street ETF model portfolios to Hub24 reflects the shift from investment professional to wealth coach. Outsourcing some aspects of investment management frees up more time to focus on what matters most – the client,” Victor said.
“Investment professionals are recommending these structures for a variety of reasons, including to save time in their practices, but also to meet client best interest obligations and offer investors transparency via access to direct shares or ETFs.
“In times of volatility, investors may also be looking for solutions that are more transparent, with open architecture.
“Our ETF model portfolios offer opportunities for growth while maintaining the same level of risk as traditional allocations. With changing market conditions, it has never been more important to provide advisers and their clients with a broader choice of quality and low-cost investment options to meet their needs.”
The ETF model portfolios, launched in mid-2019, include one target income and three risk-based ETF model portfolios that offer moderate, balanced and growth positions.
