Advisers seek to actively trade ETFs

Vanguard’s recently launched ETF Trade and Execution Help Desk recorded a surge in financial planner inquiries in 2013, as a growing number of advisers seek to actively trade exchange traded funds.

The service, which was launched locally in October 2012 but has been available in offshore markets for some time, received over 600 calls from advisers this year, of which 10 per cent was for help with live trading activity, according to Vanguard’s head of product and marketing Robyn Laidlaw.

“The desk is primarily for advisers who want assistance and information on things such as how to trade ETFs and the best time to trade. It offers education around liquidity and spreads, and can also act as a contact point for market making desks,” she said.

Laidlaw said the Australian ETF market had experienced “enormous growth” in 2013 with awareness and acceptance quickly spreading across the advice industry.

In 2014, Vanguard will also seek to help advisers incorporate the use of ETFs in their advice process, asset allocation and model portfolios.

“Investors and advisers want to be confident of the long term implications of their recommendations in terms of risk, return and cost, and as we develop new investment solutions we want to help advisers in that area,” Laidlaw said.