2019 ETF Research Report, ETFs 101

About this research

Welcome to Stockspot’s 2019 ETF Research Report. We’ve analysed over 190 ETFs by looking at factors like fees, performance, size and activity.

This year the ETF market in Australia grew from $36.3 billion the past year to $45.8 billion. Since 2014, the ETF Market has grown at a compound annual growth rate of ~34%.

ETFs have become increasingly popular with individual investors, advisers and Self Managed Super Fund (SMSF) trustees due to their low-cost, transparency and diversification benefits, as well as being available on the ASX.

Over the last year, we have seen an increase in new ETF products being released in the global shares and fixed income asset classes.

We’ve analysed over 190 ETFs by looking at factors like fees, performance, size and activity. We also look at recent ETF market trends including flows, investor behaviour, product innovation and broad ETF market trends.


ETFs 101

ETF Market Update

ETF Investing Tips

Global Share ETFs

Bond ETFs

Ethical ETFs

Smart Beta ETFs

ETF Performance Tables


Over the past year the Banking Royal Commission highlighted that many investment advisers have not always acted in the best interests of their clients. Advisers have too often recommended products from whom they get paid rather than the best product for their clients.

ETFs should be one of the biggest beneficiaries of the Banking Royal Commission recommendations due to their transparency, low costs and independence from financial advisers.  We expect the adoption of ETFs to continue to rise as investors demand trustworthy fit-for-purpose funds to look after their hard earned money.

The past year also showcased the unpredictability of share markets over short periods of time and the importance of diversifying investments to act as a counterbalance during times of uncertainty.

Even during times of market volatility when traditional active fund managers have struggled, low-cost ETFs have demonstrated their suitability as reliable long-term investment products.

This year SPIVA1 once again showed that the market index continues to beat around 80% of active fund managers, which is one of the reasons we continue to recommend index investing through ETFs to clients. Warren Buffett is also a big advocate of index investing which he reminds his disciples each year.

We hope you find the research insightful and useful, please let us know your feedback or get in touch with us.

Sources:
1 Standard & Poor (S&P) Dow Jones Index vs Active (SPIVA) Australia Scorecard Year End 2018.

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Investment Associate

Marc has over 5 years experience in the financial services industry having previously worked for Morgan Stanley, AMP and KPMG. He holds a Bachelor of Business (Finance/Accounting) from the University of Technology Sydney (UTS), and has completed his Chartered Financial Analyst (CFA) Level 1.

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