The Future of Financial Advice reforms will boost adviser interest in exchange traded funds (ETF), according to BetaShares.
BetaShares managing director Alex Vynokur told ifa that with FOFA regulations becoming mandatory from July 1, ETFs were likely to increase as a preferred option for IFAs.
“FOFA is kicking into gear from the middle of the year, and that’s also quite regularly discussed as another critical point in the continued growth of the ETF market,” Vynokur said.
“ETFs are generally regarded and renowned to be a simple, transparent and low cost investment alternative and a lot of the sentiment of the post-FOFA world is certainly around IFA looking to continue adopting those type of products in the client’s investment portfolio.”
“From an IFA’s perspective ETFs offer a compelling proposition.”
BetaShares ETF March review found that the domestic ETF market had hit the milestone figure of $7.12 billion in assets under management, on the back of positive market conditions.
It marks the sixth consecutive month that the Australian ETF industry has achieved record levels.
Vynokur said that the continual growth of the ETF industry has been largely impacted by the take up of products by advisers.
“The market is showing cumulative growth of 30 per cent per annum year on year and that’s expected to continue going forwards,” he said.
“We’re certainly seeing significant parts of the market adopting ETFs and independent financial advisers are a very significant part of the growth story.”
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 19 Sep 2018Linchpin funded advice business in liquidationBy James Mitchell
- 19 Sep 2018McMaster: Where was ASIC on Beacon, CBA and AMP?By James Mitchell
- 18 Sep 2018Peter Kell resigns as deputy chair of ASICBy Eliot Hastie
- 18 Sep 2018Two former Macquarie advisers given 10-year banBy Adrian Flores
- 19 Sep 2018Raiz addresses Millennial advice gap with chatbotBy Reporter
- 18 Sep 2018FASEA a ‘disaster’ destroying the industry: AIOFPBy James Mitchell
- view all