Bringing you live news and features since 2006 

ETFs could revolutionise Aussie investment portfolios


Financial analyst David Bassanese believes many Australian investors could revolutionise their portfolios – slashing costs and increasing simplicity – by discovering one of the best kept secrets in the financial industry, exchange-traded funds.

"ETFs are simply listed indexed funds, enabling investors to buy exposure to the overall Australian or international equity market, industry sectors, bonds or even gold – just as they would with company shares,” says Bassanese (pictured). “However many investors haven’t heard about them as due to their low management fees and lack of product commissions, financial planners and superannuation funds have been slow to embrace them.”
Around 70,000 Australians now own ETFs, and the market capitalisation of ETF-type products has grown strongly in recent years – by 50 per cent last financial year alone – to AUD7.7bn. Yet despite their advantages, still only seven per cent of the 480,000 self-managed super funds use ETFs, and only one per cent of the 6.7 million investors that own shares more broadly.  ETFs account for a mere 0.4 per cent of the AUD2trn funds management industry.
To redress this information gap, Bassanese is set to launch Australia’s first comprehensive independent book on the local ETF industry, titled The Australian Investor’s Guide to Exchange Traded Funds (ETFs). Bassanese’s book reviews the almost 90 ETF-type products now available on the Australian market, and offers ETF trading and investment tips.  The book includes examples of highly diversified model portfolios, with effective management fees up to 10 times less expensive than many actively managed retail funds.
With the looming abolition of financial planning production commissions, the growing role of SMSFs, and widespread evidence that few active managed funds consistently beat index funds, Bassanese believes ETFs could be poised to revolutionise Australia’s financial system. 
The book is being sold as a downloadable e-book only, and only from Bassanese’s website. This will enable the book to be updated regularly as the local ETF industry evolves. 

Latest News

Amundi’s ETF Market Flows Analysis for May finds that global ETF inflows were EUR105.1 billion with US-domiciled equity funds accounting..
MerQube has announced the appointment of Dave Mueller as Chief Financial Officer. Mueller brings 17 years experience operating in corporate..
Northern Trust Asset Management (NTAM), has announced that David Abner is joining as Head of Global ETFs and Funds...
Nvidia’s market cap surge to more than USD3 trillion making it the second most valuable company in the world almost..

Related Articles

CN Tower, Toronto
The winners were announced in the second ETF Express Canadian awards at the event held at The Quay in Toronto,...
Darren Johnson, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Stuart Chaussee
In January this year, global data and business intelligence platform, Statista reported that there are now more than 8000 ETFs...
Ethereum coin
Last week saw Australia launch spot bitcoin ETFs, with Matteo Greco, Research Analyst at Fineqia International, writing that Monochrome Asset...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by