Do you have ETFs in your portfolio?

08 June 2016

By / Daniel Gerson

Do you have ETFs in your portfolio?

How can ETFs Help Me?

ETFs - or exchange traded funds, put simply are like a conventional managed fund, except they mostly have lower fees, and are listed on the stock exchange. They can provide active or passive investment management, but predominantly track assets or a market index. ETFs provide investors with an easy, low cost option to diversify investments across a number of asset classes.

 

 

Benefits of ETFs Include:

  • Low Cost – ETF fees are usually significantly lower than managed funds. ETFs are also more cost efficient than investing in the same exposure of individually purchased shares.
  • Diversification – By holding ETFs as a part of your investment portfolio you are able to access a large range of investments held within a single ETF. This assists in diversifying your portfolio against the risks of holding a lesser amount of stocks. ETFs are usually asset class, and sometimes location focussed, meaning that you can utilise ETFs to provide exposure to asset classes which are otherwise difficult to gain exposure to. An example of this could be listed property, or international stocks.
  • Tax Efficiency – The traditional low turnover of investments provided by an indexing approach minimises the capital gains distribution impact. This improves performance and tax efficiency over the longer term.
  • Liquidity – ETFs are traded on a daily basis and with high volumes. This ensures the that ETFs can be sold at market price and within minutes. This is particularly important for clients who may need to draw down on investments, or who like to maintain control over their funds.
  • Transparency – ETFs come to the market with regular information including the daily fund Net Asset Value (NAV) making them highly transparent investments. Furthermore, being listed on the ASX there are compliance requirements associated with these investments, meaning that the fund managers have to report to the market.

 

How Do I Invest In ETFs?

  • Personal Investments – We are able to assist you with the advice and purchase of ETFs for your personal investments. We can assist you with asset allocation and diversification to ensure that you achieve your goals.
  • Superannuation – SMSF – If you have a SMSF we are able to assist with the implementation of an ETF portfolio via your SMSF. We have extensive experience in this field.
  • Superannuation - Non-SMSF – We are able to create a tailored ETF investment portfolio through retail superannuation offerings. We are able to do this with a balance as small as $20,000.

 

How can Quest Advisory Group help?

At Quest Advisory Group we have extensive experience in all aspect of financial planning and are able to assist you with reviewing your financial goals, investments, and management of your super, including preparation for retirement. We can build a financial strategy tailored specifically to your needs and objectives in the short, medium and long term.

 

What Do I Do Now?

We suggest that you do the following:

  • Contact us to have a cost and obligation free health check to go through your current situation.
  • We will then make a time to meet with you and work through all your questions so we can assist you.
  • To contact us, please either submit a contact us form on our website or feel free to contact us on:
    • Phone: 0429 690 813
    • Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
    • Facebook: Quest Advisory Group

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