SMSFundamentals | Oct 06 2011
SMSFundamentals is an ongoing feature series dedicated to providing SMSFs (smurfs) with valuable news, investment ideas and services, in line with SMSF requirements and obligations.
For an introduction and story archive please visit FNArena's SMSFundamentals website.
By Greg Peel
Earlier SMSFundamentals articles have sought to introduce smurfs to exchange-traded funds (ETF) for consideration in self-managed super funds. (Active, Passive And ETFs; Exchange-Traded Funds Part II).
BlackRock Australia's ETF business iShares has this week announced the launch of what it calls a multi-faceted education campaign to raise investor understanding of ETFs. iShares is the world leader in listed ETFs, accounting for more than 40% of the global ETF market.
“This education series,” suggests iShares Australia head Mark Oliver, “explains what ETFs are, the way they work and how they can be incorporated into investment portfolios”.
In launching the campaign, Oliver is attempting to counter what he suggests is recently published misleading information about ETFs that should be countered by facts. “We believe all investors should be appropriately informed about ETFs,” says Oliver, “particularly their safe structure and the benefits they provide”. With ETFs, investors are provided with an attractive way to access multiple markets, asset classes and sectors in a cost-effective manner, Oliver suggests.
As part of the campaign, iShares has added tools to its website providing a performance chart which examines how closely an iShares ETF follows its benchmark. There is also a portfolio allocation tool allowing investors to view the underlying countries and sectors in a portfolio, and a global pricing tool that shows investors when a fund’s underlying holdings trade on the local market.
The above tools are prefaced by an educational video, “Understanding ETFs”. FNArena recommends readers take a look at the iShares educational website and peruse its offerings.
There are currently over 50 ETFs listed on the ASX through BlackRock and other ETF sponsors, offering investment in local and global stocks indices, stock sectors, high-yield portfolios, fixed interest and commodities. Visit the ASX's ETF page for listing details.
Please be advised by FNArena, as is the case with investments of any sort, that it is imperative you seek independent advice from your stockbroker or financial adviser as to the most appropriate ETF selections for your portfolio, and please educate yourself on the workings of EFTs and the implications for risk, reward and tax management before formulating your investment decisions.
