VanEck

Australian investors are looking past the allure of franking credits and moving towards a more unbiased diversification, with ETFs providing a cheap, liquid and highly available access point.

Most Australian financial professionals are now using smart beta ETFs and other passive investments in their clients’ portfolios, a new VanEck survey shows, continuing a three-year trend away from active management approaches.

Despite continuing strong economic data for Australia, markets have forecast significant earnings downgrades, and results have been mixed so far. But a main highlight – CBA’s record $10 billion profit – may not be enough to improve investors’ outlook on the banking sector, analysts say.

For those planning to invest in offshore assets, the decision whether to hedge currency exposure is an important one as movements in the Australian dollar can either erode or add value to an investment.

China is tipped to be the largest economy in the world, yet most client portfolios contain little to no exposure to China A-Shares. While the ease of access has often been cited as one of the reasons for the omission, there are a number of managed funds and ETFs that cover this growing asset class that can easily be implemented.

VanEck’s Vectors China New Economy ETF (ASX: CNEW) has been among the top performers in recent months. It takes investing to a whole new level by investing in companies with the best growth prospects tied to a specific demographic. Russell Chesler, head of investments at VanEck, recently presented “ETFs and the next generation” to advisers….

The Australian exchange-traded fund (ETF) market continues to grow at a phenomenal rate, after inflows for January this year pushed the total ETF market to a new record high of $96.8 billion in total capitalisation. Over the last year the ETF market has grown by 47%, or $30.8 billion, as ETF providers have been busy…