In an article for the website SMSF Adviser, Miranda Brownlee reports that SMSF assets comprise of nearly 50% of all the assets held in the exchange-traded funds. And because the SMSF sector finds itself doing really well, the ETF sector has piggybacked on its success to reach $18.6 billion. Here is a statistic to put things in perspective- only in the month of May, the industry has grown by $900 million.
SMSF investment in ETF
ETF is resiliently rising on the minds of SMSF investors and the relationship is only going to be mutually beneficial. Earlier, the SMSF sector showed penchant for the ‘buy’ and ‘hold’ index but with time, this affection has ramified to other branches of tactical funds. The range of ETF products are such (and the way the tally is growing by the day) that we can look forward to many more SMSF holders seeking haven in it, ensuring an easy-to-manage, diversified portfolio for retirement.
You can read the original article here.
Rebalancing portfolio through ETF
Exchange-traded funds have carved quite a name for themselves and deservingly so. For commodity, currency and international equity market, ETF has already become a name worth reckoning with. There is so much that can go right for the union of SMSF and ETF. ETF can help SMSFs rebalance their portfolio and manage their transition.
Tax reduction in the accumulation phase
It is allocation of asset which counts much above selection of security. Expenses and costs involved in management of SMSFs can be beautifully avoided if a passive vehicle like the ETF market is used in the SMSF sector. And lest it be forgotten, ETFs can help SMSF owners in reducing tax liability in the accumulation phase.
