Exchange traded funds were once considered a blunt instrument, but no more. Today, a financial adviser can use a handful of ETFs to finetune the risk and return profile of their client portfolios.
More than that, ETFs can easily address an issue that is always top of mind: fees. While many managed funds still charge annual management fees around the 1% mark, ETFs charge as low as 0.4%. In plainspeak, an investor can access a $10,000 ETF portfolio for the price of a cup of coffee.
In this edition, we interview Alex Zaika, head of wealth, on how low fees impact long-term investment results and how investors can strike the right balance. Read this article to find out more from one of the most successful providers of ETFs in Australia, BlackRock.