ETFS ARE IN HOT DEMAND.
Written by: Robert and Russell Markham
It is official, over 1.7 million Australians invest in ETFs! That was at the end of 2021 – a surge of 33%! For 2022, a further 250,000 investors are forecast to take up investing in ETFs. 2022 will be the year where there will be 2 million Australians investing in ETFs. To put this into perspective, the global ETF industry is over 9 trillion USD in size.
Some further interesting insights into the ETFs market in Australia:
* 55% of ETF investors are aged between 18 and 34.
* ETF investors have doubled their holdings in 2021 (from 5% to 10%).
* The need to diversify was one of the key reasons for buying ETFs.
* ETF investors were seeking better returns than what fund managers were providing.
* Fund managers are listing their funds via ETFs assisting with the uptake.
* 136 billion invested in ETFs in 2021, up from 95 billion the year before!
* The growth in ETFs in 2021 has been the largest on record to date.
* Reaching international markets via Australian listed ETFs is easy for investors.
* 33 ETFs were released in Australia last year.
What about the ETFs tracked in VectorVest? VectorVest does a tremendous job, giving you that international investing edge, where you the subscriber get an incredibly powerful and sophisticated yet easy to use set of tools to identify those top ETFs in seconds. The number of ETFs analysed by VectorVest each day is as follows:
USA: 1760 ETFs, covering 32 ETF industries
Australia: 218 ETFs, covering 9 ETF industries
Canada: 828 ETFs, covering 7 ETF industries
Europe: 413 ETFs, covering 2 ETF industries
UK: 546 ETFs, covering 4 ETF industries
Total count makes it 3,765 ETFs across 5 regions, totaling 54 ETF industries in total. To see the entire list of ETFs for each country, simply click on the Viewers tab and then click on ETF Viewer. This will break out all the ETFs for you. If you scroll all the way over to the right of your screen until you find the Industry Column – you can then check out the associated ETF industries. With all these ETFs, let’s take a closer look at some standout performers in Australia and the US from 4 January through to 28 March 2022:
Note: we had written about OOO.AX in the 18th of February 2022 Essay and about FUEL.AX on the 18th of June 2021.
When looking at the ETF industries across the countries, the power of the industries is vast and diversified. Some of the ETF industries cover: commodity, currency, index tracking, bonds, energy, fixed income and treasury, biotech, real estate, short, large-cap, mid-cap, materials, health, utilities, thematic, biotech, telecommunications, financial, regional, dividends, natural resources…and the list goes on and on. You have the power to find an ETF in a sector/industry that you are interested in. Or, how about using the power of VectorVest to find you the hottest performing ETFs that track the best performing industries at present?
One of the best ways to find top performing ETFs is to make use of UniSearch. One you have clicked on the UniSearch Tab, locate the ETF Group which will house all the ETF searches for Australia. This will return the best performing ETFs ranked and sorted across several criteria depending on the UniSearch you apply. For Australia, there are currently 6 ETF UniSearches. For the USA, there are 18 UniSearches to identify ETFs for you. The other way is to access all the ETFs per the ETF Viewer (per the Viewers tab) and to sort your ETF list accordingly. Sorting your ETFs by RT is a quick way to discover the hottest movers! If I sort the Australian ETFs by RT as of 28 March 2022, I get OOO.AX, GEAR.AX and FUEL.AX as the top 3. These top 3 ETFs have returned 25% since 4 January to 28 March this year.
In addition, don’t forget, you have the ETFs Portfolio per the Portfolios – listed under the VectorVest Portfolios. The ETFs Portfolio has produced some steady gains over the years with only 2 trades made (apart from the 5 ETF holdings) since 2013.
If you have further questions about the information provided in the webcast, please give us a call. Our VectorVest Consultants are ready to help you.
VectorVest Inc (ARBN 654 498 218) and Russell Markham are Authorised Representatives (No. 1294036 and No 1294037) of Centra Wealth Pty Ltd (ABN 39 158 802 450) which holds an Australian Financial Services License (AFSL No. 422704).
Please refer to our Financial Services Guide at https://vectorvestau.wpengine.com/financial-services-guide/ which provides you with information about us and services we can provide. Any advice is general advice only and does not consider your personal objectives, financial situations or needs. You should consider whether the advice is suitable for you and your personal circumstances.
Any advice is general advice only and does not consider your personal objectives, financial situations or needs. You should consider whether the advice is suitable for you and your personal circumstances.
Past performance is not a guarantee of future results. Forecasts and BackTests used or discussed in this presentation are intended as a guide only and actual results may be affected by known or unknown risk and uncertainties and therefore may differ materially from results ultimately achieved.