Invest
The dark horse in the ethical investing race
A demographic shift towards younger investors could potentially see ETFs become the “natural vehicle” for ethical investments, BetaShares has said.
The dark horse in the ethical investing race
A demographic shift towards younger investors could potentially see ETFs become the “natural vehicle” for ethical investments, BetaShares has said.
Speaking in Sydney today to mark the release of BetaShares’ annual ETF report, CEO Alex Vynokur said he predicts that the ETF industry will continue to witness product innovation throughout 2018.
In particular, he said BetaShares was “humbled” to experience strong demand for ethical investing via ETFs.
“That's certainly one area that we haven't expected,” Mr Vynokur said.
“Even when we were starting our business [we didn’t expect] to see the ETF business be associated with this.”
However, he noted that this development is consistent with higher volumes of Millennial investors adopting ETFs.
Courtesy of this demographic shift, Mr Vynokur said BetaShares has been learning more about ethical and sustainable investing.
“We think there's still a long way to go, we're only just in the very, very early steps and i think more and more investors will start embracing ethical investments,” he said.
“We certainly think ETFs have an opportunity to become the natural vehicle through which those investments are actually made.”
The report, developed in partnerships with research specialist Investment Trends, revealed that Millennials make up nearly one-third of “next wave” investors, or investors eager to try out ETFs.
Noting that overall numbers of “next wave” investors were at the highest level that BetaShares and Investment Trends have seen, Investment Trends research director Recep Peker said the surge in Millennial numbers was significant due to historical difficulty in encouraging younger generations to invest.
Mr Peker suggested the Millennial interest in ETFs could be due to the relative ease of ETF investments, observing that the main barrier to investing for younger generations is a lack of understanding of what to invest in or where to start.
It doesn’t hurt that low interest rates and housing affordability challenges are also fuelling younger demographics to reconsider traditional modes of wealth creation, Mr Vynokur added.
The overall shift towards younger ETF investors means the average age of new ETF investors, or those who began investing in ETFs in the last year, is now 42. Five years ago that age was 56.
Mr Vynokur said, “The ETF industry has continued to grow and mature in Australia, and this year we are seeing evidence of a marked change in the type and age of investors as it becomes more mainstream.
“This generation of investors is redefining ‘blue chips’, with traditional ASX market darlings giving way to global technology, healthcare and sustainability leaders.”
Mutual funds
Sold your stocks during the dip last year? Here’s how much it might have cost you
If you cashed out during last year’s COVID-19 crash, here’s how much it might have cost you. ...Read more
Mutual funds
‘True to label’ warning again given to fund managers: ASIC
Consumers should be wary: Fund managers aren’t doing enough to ensure products are “true to label”, with a number of product names not aligning with underlying assets in those funds. ...Read more
Mutual funds
Move over, mainstream: ESG excels
Responsible investing is proving its worth in the investment game, beating out the total return of the S&P/ASX 300 over the last decade. ...Read more
Mutual funds
ASIC makes frozen funds easier to access
A new relief measure will enable investors suffering hardship to access their investment money even where managed funds have been “frozen” to maintain fund stability through the COVID-19 pandemic....Read more
Mutual funds
Is it time to put a food-style label on investment products?
Much like the food people eat, investors are being told they need to know what they are buying before purchasing exchange-traded products, as many are unaware of the ramifications if they don’t. ...Read more
Mutual funds
Why you should think about ESG investing this World Environment Day
Today marks World Environment Day, with experts using the occasion to flag how Aussies can benefit by investing in a way that helps the planet. ...Read more
Mutual funds
Is a model portfolio the way to go during a downturn?
The use of model portfolios – a type of managed account – can provide investors with a range of benefits during a downturn such as the COVID-19 crisis, an investment expert has touted. ...Read more
Mutual funds
Retail drag on REITs not all doom and gloom
In the world of REITs, COVID-19 is a human and economic crisis but not another GFC, according to an investment group. ...Read more
How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness
Listen now
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
Mutual funds
Sold your stocks during the dip last year? Here’s how much it might have cost you
If you cashed out during last year’s COVID-19 crash, here’s how much it might have cost you. ...Read more
Mutual funds
‘True to label’ warning again given to fund managers: ASIC
Consumers should be wary: Fund managers aren’t doing enough to ensure products are “true to label”, with a number of product names not aligning with underlying assets in those funds. ...Read more
Mutual funds
Move over, mainstream: ESG excels
Responsible investing is proving its worth in the investment game, beating out the total return of the S&P/ASX 300 over the last decade. ...Read more
Mutual funds
ASIC makes frozen funds easier to access
A new relief measure will enable investors suffering hardship to access their investment money even where managed funds have been “frozen” to maintain fund stability through the COVID-19 pandemic....Read more
Mutual funds
Is it time to put a food-style label on investment products?
Much like the food people eat, investors are being told they need to know what they are buying before purchasing exchange-traded products, as many are unaware of the ramifications if they don’t. ...Read more
Mutual funds
Why you should think about ESG investing this World Environment Day
Today marks World Environment Day, with experts using the occasion to flag how Aussies can benefit by investing in a way that helps the planet. ...Read more
Mutual funds
Is a model portfolio the way to go during a downturn?
The use of model portfolios – a type of managed account – can provide investors with a range of benefits during a downturn such as the COVID-19 crisis, an investment expert has touted. ...Read more
Mutual funds
Retail drag on REITs not all doom and gloom
In the world of REITs, COVID-19 is a human and economic crisis but not another GFC, according to an investment group. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
