Volatile geopolitical events such as the coronavirus and Brexit have seen the Australian ETF industry evolve rapidly, exchange-traded product provider ETF Securities has said, with investors eyeing up the safety of the funds.
As stated in ETF Securities’ new report on the segment, eight new funds were listed across multiple asset classes and one ETF was delisted in the quarter ending 31 December.
The quarterly Australian ETF Landscape review has listed all ETFs available to Australian-based investors via the ASX.
Kris Walesby, head of ETF Securities commented: “This year we have seen equity investors become understandably jittery due to geopolitical events.
“Be it the Iran/US conflict, the coronavirus, China/US trade tension, or Brexit, investors are understanding the need to assess what opportunities are available,” he said.
“Each investor will have their own motive and way of seeing sell-offs, be it to take advantage of the dips to portfolio defence with ETFS like GOLD. However, navigating through the wide selection is difficult.”
He adds the advantages of the products are simple and convenient access to offshore companies without the red tap of foreign market tax reporting and withholding tax complications.
”Given the ASX is less than 3 per cent of global markets, ETFs are the ideal investment vehicle for investors looking to diversify a portfolio by broadening its geographical reach,” Mr Walesby said.
Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now.
Despite the Australian economy’s ongoing rapid recovery, an Australian equity head believes GDP growth will “fade” in 2022. ...