Why more investors are choosing ETFs: Sharesies Shared Lunch

Exchange Traded Funds (ETFs) have changed the way people invest, making it easier to access a wide range of companies, markets and asset classes through a single investment.

And their popularity continues to grow.

In this episode of Sharesies' Shared Lunch podcast, Thom Bentley from Smart looks at what's behind the growth of ETFs, how investors are using them and what more than 30 years of ETFs in New Zealand has taught us about investing.

Common sense investing principles

There are now ETFs covering everything from broad global share markets to individual sectors and investment themes. But more choice doesn't have to mean more complexity.

Thom discusses why many investors use broad, low-cost ETFs at the core of their portfolios, with more targeted investments around them. And whatever you choose to invest in, the same common-sense principles still apply: diversify, keep costs low and take a long-term view.

The conversation also covers:

• Why ETFs have grown so rapidly in New Zealand and around the world.

• How ETFs can make diversification simpler.

• The growing interest in markets beyond the US.

• The opportunities - and risks – of more specialised ETFs.

• How ETFs work and why liquidity and transparency matter.

30 years of ETFs in New Zealand

Smart launched New Zealand's first ETF in 1996, starting with a single fund investing in New Zealand's 10 largest listed companies.

Thirty years later, Smart offers 40+ ETFs across different markets and asset classes. While investing has changed considerably over that time, the principles behind Smart investing have been consistent.

Keeping it simple, spreading your investments and giving them time to grow still makes sense.

It makes sense to invest Smart.

_{Appearance on Shared Lunch is not an endorsement by Sharesies of the views of the presenters, guests, or the entities they represent. Their views are their own.}  

_{Shared Lunch is brought to you by Sharesies Australia Limited (ABN 94 648 811 830; AFSL 529893) in Australia and Sharesies Limited (NZ) in New Zealand. It is not financial advice. Information provided is general only and current at the time it’s provided, and does not take into account your circumstances, objectives, or needs. We do not provide recommendations and you should always read the disclosure documents available from the product's issuer before making a financial decision. Our disclosure documents and terms and conditions—including a Target Market Determination and IDPS Guide for Sharesies Australian customers—can be found on our relevant Australian or NZ website.}  

_{Investing involves risk. You might lose the money you start with. If you require financial advice, you should consider speaking with a qualified financial advisor.}