The recent run in bank share prices may well continue and exchange-traded funds are an optimal way for clients to gain exposure, according to Market Vectors.
Market Vectors Australia director, investments and portfolio strategy, Russel Chesler says investors can struggle to choose between bank equities and that ETFs can asssist with that.
“With historic dividend yields ranging from 6.4 per cent to 7.5 per cent, including franking credits, and with term deposits not yielding much over inflation, many retirees are choosing bank shares to supplement their income,” said Mr Chesler.
“Australian investors have a huge appetite for bank shares because they represent opportunities to earn relatively high yields and to reap healthy capital growth.
“Given bank shares represent a substantial portion of the traded value in the Australian share market, investors may consider this ETF as a core position in their investment portfolio,” Mr Chesler said.
The regulator has banned a financial adviser for five years and cancelled his firm’s AFSL. The Australian Securities ...
The lack of visibility and consistent regulatory instability are stopping prospective talent from entering the advice ...
The introduction of Rhombus Advisory has caused a shift in the top advice licensees as Insignia separates its advice ...
Never miss the stories that impact the industry.
Get the latest news! Subscribe to the ifa bulletin