The restrictive nature of dealer group approved product lists (APL) is the major reason more financial planners are not recommending the use of exchange-traded funds (ETF) for their clients, according to an industry forum.

Despite the popularity of exchange-traded funds (ETF) in the SMSF sector, trustees continue to require education and guidance on the use of these investment instruments, a technical expert has said.

A major exchange-traded fund (ETF) manager has predicted there will be an increasing number of these offerings covering environmental, social and governance (ESG) investing being introduced to the market in the future.

Diversification is still the major factor motivating SMSF members to invest in exchange-traded funds (ETF), the latest market research has shown.

The latest industry research has revealed that while SMSFs’ use of exchange-traded funds (ETF) continues to increase, they are no longer the main growth driver for these types of investment vehicles.

Exchange-traded funds (ETF): they’re just cheap, simple index trackers that give you exposure to a region, country or theme, aren’t they? 

While SMSF investors tend to pare back their ETF equity exposure and increase their allocation to defensive assets, such as bonds and cash, during periods of volatility, this behaviour is at the margins, according to State Street Global Advisors (SSGA).

State Street Global Advisors (SSGA) will continue to focus on meeting the evolving requirements of SMSF investors and providing more sophisticated education when it comes to servicing the sector this year.

Accusations the exchange-traded fund (ETF) sector is creating an investment market bubble are unfounded and inaccurate, a financial services sector economist has said.