Advised SMSFs typically have a more diversified portfolio than those without an adviser and non-SMSF investors, according to recent analysis by a stock trading platform.
The review of trades carried out by Ausiex and released in its “SMSFs Under Advice” report found a clear difference in asset allocations among advised SMSFs, self-directed funds and non-SMSF investors.
The report, which focused on Ausiex users’ investment behaviours, found advised SMSFs were more likely to hold investments in passive exchange-traded funds (ETF), active ETFs, listed investment companies and trusts, hybrids and Australian real estate investment trusts than self-directed funds.
Ausiex head of product, customer experience and marketing Brett Grant said the report noted “an increasing allocation of advised SMSFs to ETFs, in stark difference to self-directed SMSFs and non-SMSF retail accounts, both of which tended to prefer direct investments in equities”.
“Advised SMSFs also tend to be more diversified in terms of the number of unique securities held, as well as sector allocations,” Grant said.
“For example, advised SMSF accounts held 15 securities on average, in comparison to 12 for self-directed SMSFs.”
The analysis indicated advised SMSFs were also more inclined toward environmental, social and governance (ESG)-related investments than other investors, allocating nearly 2.7 per cent of their total exchange-traded products portfolio value to ESG investments, compared to just over 2 per cent for self-directed funds.
The analysis also showed a surge in enthusiasm and traded value for alternative asset classes, such as cryptocurrency and crypto-infrastructure ETFs, which saw a 218 per cent increase across all SMSF accounts in the final quarter of 2024.
The data highlighted generational differences also played a significant role in asset selection within the SMSF sector.
“We found advised generation X SMSFs allocated significantly more to healthcare stocks than their self-directed counterparts and less to industrials,” Grant said.
“Advised millennial SMSFs also allocated significantly more than their self-directed SMSF counterparts to healthcare, as well as industrials, real estate and consumer discretionary stocks.
“It appears evident that younger SMSFs investors may have different trading preferences to their parents, not just because of their stage of life, but also due to their familiarity with securities such as exchange-traded funds and even cryptocurrency.”