Register  
Planners tune in to ETFs
Monday, 9 March 2009 12:30pm

Over the next decade, exchange traded funds (ETFs) could put management fees of many Aussie fund managers under pressure - marking ETFs as the next boom market for fee-for-service planners.

Bruce Baker, director of Queensland-based Puzzle Financial Advice, said the ETF sector will revolutionise investing in Australia, citing low cost, simple risk management, precise timing, and wider investment choice as the building blocks to the market's growth.

He first recommended ETFs four years ago.

"ETFs broaden the menu of choices, with much wider asset allocation choices," said Baker.

"For example, for the last few years, Australian investors have been able to conveniently diversify into Gold Bullion via Gold Bullion Securities and now have ready access to convenient investing in other previous metals like platinum and silver," he said.

In the US, where hundreds of ETFs abound, investors are able to access products that they can use to hedge currencies, short the market and fixed interest among others, he said.

"The good news for fee-based advisers and their clients is that over time, more and more of these US ETFs will become available in Australia," he said.

Baker says managed funds which simply track an index will find it increasingly difficult to compete with an ETF that tracks the same index.

This in turn will enable financial planners to build diversified or targeted portfolios with much lower MERs than in the past," he said.

Blogs
Follow the industry experts.
Christopher Page
Christopher Page
Managing Director

Medcraft's appalling speech
I am surprised. More than that, I am astonished, shocked. Last week I was left speechless by the address that the Australian Securities ...read more
 
Benjamin Ong
Benjamin Ong
Chief Economist

Reflation, rotation and the taper
'Tis being my final type (drivel, to some gentle readers) for the year, we'll take a look back at the 2013 that was to seek the lessons ... read more
 
Alex Dunnin
Alex Dunnin
Director of Research & Editorial Services

Women-led companies better for investors
The Australian government end last year released its first Gender Equality Scorecard and while the results are discouraging, a separate ... read more
News Search   
VideoBrought to you by
The global and Australian economic outlook
The anchor man of the panel, Saul provides great insights on the domestic economy. And bravely makes the forecast that the Reserve Bank will not cut interest rates this year and that the next move is up ... Watch video
The major economies in 2015
Is the European economy dead in the water? Is faith on Abenomics waning? Why should investors be more optimistic about the US economy this year? Chris Probyn, the Boston-based chief economist of State ... Watch video
Market Thinking - A different way of looking at economies?
First, a confession. Mark may have started his career as an economist but he joins this year's panel not as a chief economist but as the head AXA Framlington Asia. This is to the benefit of the audience ... Watch video
The two-speed economy in reverse
James provides a local perspective and explains to the audience why the mining investment boom is an aberration and it is now a 'return to the old normal'. To view James Bond's slides please click ... Watch video
Great unwindings
Bob believes plunging oil prices may extend the stockmarket rally by a year or two and discusses why investors could expect a volatile few months. Overall, he believes we are entering an era of low returns ... Watch video
Get it
Daily
FREE to your inbox, get the Financial Standard Daily Email.
Get the Free
iPad app
Download the Financial Standard iPad app for FREE
Industry
Events
MAR
05
MAR
10
Adviser Big Day Out Investment Manager Roadshow-Perth
11
Adviser Big Day Out Investment Manager Roadshow-Adelaide
12
Adviser Big Day Out Investment Manager Roadshow-Melbourne
18
Adviser Big Day Out Investment Manager Roadshow-Brisbane
19
Adviser Big Day Out Investment Manager Roadshow-Sydney
News
Bites

$245 (inc GST) for 1 year
 
 
Copyright © 1992-2015 Rainmaker Group
All material on this site is subject to copyright. All rights reserved. No part of this material may be reproduced, translated, transmitted, framed or stored in a retrieval system for public or private use without the written permission of the publisher.
Link to something JbuZJw3m