Busting the myths on ETFs

ETFs have been treated like "pariahs" but that's neither fair, nor true, the CEO of ETF Securities Australia has said, while dispelling myths surrounding the growing investment vehicle class. Speaking on the Nest Egg podcast, ETF Securities Australia's Kris Walesby said criticisms of ETFs as driving the market in certain directions are unfounded as ETFs, by nature, track. "ETFs cover a lot of different things. If a product provider's provided something that is on a highly volatile product and then you've tripled it, whether that ETF should be there or not is a separate discussion, but the ETF actually did exactly what it was meant to do," Mr Walesby said. "People are resentful because they've lost their money, but actually, it's not the fault of the ETF." He also spoke to the team about: · Why there's no reason to be scared of ETFs; · Choosing between active and passive managers; and · Why being able to trade an ETF during the day is an "amazing risk mitigation factor". Thanks Kris, for sharing your insights with the Nest Egg podcast team! You can stay up-to-date with what Kris Walesby and ETF Securities Australia are up to here. Have an investment story to share? Get in touch at [email protected] and you might get featured on the next episode.