ETFs

ETFs may have utility, but the notion that you can diversify responsibility of each individual investment needs to be challenged according to managers at The Inside Network’s Income and Defensives Symposium.

Inefficiencies in the back office and clearing systems that the burgeoning ETF market relies on need to be rooted out, but data shows there may be a disconnect between what providers and consumers believe matters.

Rapid economic and geopolitical changes have led to a new investment regime in the latter half of 2023, according to the BlackRock Investment Institute. Investors should look to be agile and ready to respond to key themes, with the end of the set-and-forget era key among them.

The popular debate lacks nuance. Neither are foolproof but both can play a crucial role in building portfolio resistance and balancing the risk/reward dynamic.

With ETF providers offering a slew of products aimed at shipping exposures, the ‘esoteric legend’ of the Baltic Dry Index still has a place in the hearts and minds of investors.

BlackRock sent a shiver through the domestic ETF market, which has tripled in the last four years to around $25 billion, slashing prices for two if its core products.

Exchange-traded funds continued to attract inflows from investors in 2022, albeit at a slower pace thanks to rising interest rates and market volatility. Resources and mining-focused funds were clear standouts in a challenging year.

The announcement comes amid a major push into the domestic market for Global X, which in December signaled its intention to launch ten new products in 2023.

ETFs have revolutionised the investing universe for many good reasons. But ultimately ETFs are just like stocks – there are the good, the bad and the ugly.

The pendulum may have swung back towards active management this year, but the domestic ETF market is flush with options and continues to steal FUM.