Exchange-traded funds (ETFs) provider Australian Index Investments (Aii) is considering expanding its range of strategic ETFs with products that track purpose-built model investment portfolios.
These portfolios would offer exposure to multiple asset classes, including equities and bonds, in much the same way as traditional superannuation funds do.
"What we are doing is putting out strategy-based ETFs, where ETFs might track an index that holds the model portfolio," Aii chief executive Annmaree Varelas said.
"That would work well for financial planners, so that they can actually buy a model portfolio on the market," she said.
Aii would look for a third party to construct these model portfolios.
"We would look to partner with somebody that would actually construct those [model portfolios] and you would probably look at proprietary indices or something like that to actually make it work," Varelas said.
"We hope to put some products out like that in the first half of next year."
The model portfolios would likely be structured along traditional categories, ranging from conservative to growth-orientated portfolios.
Varelas, who joined Aii from the Australian Securities Exchange last month, said the move away from commissions to fee-for-service by financial planners has created a demand for these products.
"Planners are becoming more proactive in their strategy, looking for products that are in demand and that are priced daily," she said.
Aii currently offers ETFs that track the energy, financial, industrials and resources sectors.
Varelas said the company will also look at expanding its range of products, most likely in healthcare, utilities and emerging markets.
