Adviser use of ETFs likely to continue to grow, Smart says
Strong growth in adviser adoption of exchange-traded funds is a trend that is likely to continue, Smart’s head of business development Thom Bentley says.
He said Smart’s ETF funds under management had grown by about 22 percent a year over the past five years and over the last three the growth rate had increased to 35 percent.
“We’re seeing accelerating adoption of ETFs here and I think that’s being driven by a couple of things. One is adoption by self-directed retail investors, people who use Sharesies, InvestNow, platforms like that and that’s largely because ETFs are just a very convenient way to get low-cost market exposure.
“Then, in the adviser space, we’re seeing quite significant adoption … I think that’s being driven by the fact that ETFs are often a really effective way of building portfolios for clients. You can take care of the market returns using ETFs and build some direct holdings around that which are higher-conviction positions. We’ve seen growth from both the private wealth and self-directed space the last five or so years.”
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