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Vanguard: Fundamentals Faze Facebook FloatFri, 25 May 2012 5:00pm
Smart Investing with Robin Bowerman
Fri, 25 May 2012 4:55pm
Smart Investing with Robin Bowerman
Fri, 18 May 2012 5:05pm
Smart Investing with Robin Bowerman
Fri, 18 May 2012 5:00pm
Smart Investing with Robin Bowerman 
Tue, 15 May 2012 2:00pm
Moderator: Andrew Main, The Australian. Panelists: Drew Corbett, BetaShares; Tim McGavin, Laguna Bay Pastoral Company
Mon, 14 May 2012 9:15am
Smart Investing with Robin Bowerman
Mon, 14 May 2012 9:10am
Smart Investing with Robin Bowerman
Mon, 14 May 2012 9:05am
Smart Investing with Robin Bowerman
Tue, 8 May 2012 2:00pm
Moderator: Gillian Bullock, The Australian. Panelists: Greg Bisset, InvoCare; Mary-Ann Cook, Sureplan; Amelia Christie, CPSA 
Vanguard Wealth Series: Fixed Interest InvestingFri, 4 May 2012 11:50am
Time Blue, interviews David Simon and Sue Wang 
Thank you for downloading the Smart Investing podcast from index fund manager Vanguard Investments Australia, on the web at vanguard.com.au
This commentary is written by Vanguard Principal, Corporate Affairs & Market Development Robin Bowerman. The title is SMSFs dominate ETF market
It was first published on Wednesday 7 September 2011
And is read by Michael Mullins
Please remember that advice in this podcast represents a general view. It is recommended that you seek specific financial advice, before making investment decisions.
Self-managed super funds are truly a dominant force among Exchange Traded Fund (ETF) investors.
Figures published in the Vanguard/Investment Trends 2011 Self Managed Super Funds Report released last week shows that of the 59,000 ETF investors as at May, 30,500 or almost 52 per cent were self-managed funds.
Why do SMSFs make up such a large percentage of ETF investors? This is the question that specialist investment researcher Investment Trends has sought to answer.
The main reasons given by SMSFs for their most recent ETF investments are:
1. Diversification (73 per cent of funds).
2. Low cost (50 per cent).
3. Lower risk than holding individual stocks (37 per cent).
4. Liquidity and ease of sale (35 per cent).
5. Access to specific overseas markets (33 per cent).
6. Means to provide core of share portfolio (27 per cent).
7. Trading flexibility (26 per cent).
Less common reasons for SMSFs’ most recent ETF investments included transparency of underlying investments (14 per cent of funds) and ability to quickly rebalance portfolio (13 per cent).
Most of the reasons that SMSFs give for investing in ETFs appear to suggest that many fund trustees are using the products as a means to reduce risk and increase opportunities through diversification and efficient rebalancing. These are, of course, key considerations – including in highly volatile markets.
And the emphasis on the low cost of ETFs suggests investors are concentrating on factors that they can have a large degree of control over in their portfolio, including the costs. High investment management costs are really highlighted to investors when investment returns are low or negative.
And that concludes the column
SMSFs dominate ETF market
from Robin Bowerman, Principal, Corporate Affairs & Market Development at index fund manager Vanguard Investments Australia
To receive the column by email each week go to vanguard.com.au and register with Smart Investing.
Please remember that advice in this podcast represents a general view. It is recommended that you seek specific financial advice, before making investment decisions.
