Lack of understanding of ETFs is the biggest barrier for retail investors who have never invested in the sector, new research by HANetf, Europe’s first independent white-label ETF and ETC platform , and leading provider of thematic ETFs, and crypto and commodity ETCs, shows.
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Tom Bailey, Head of ETF Research at HANetf
- But more than one in 10 retail investors who have never bought ETFs will consider investing in the year ahead
- HANetf offers the most extensive range of thematic ETFs in Europe and top performing themes include solar, clean energy, smart and distributed energy, uranium miners, and midstream energy.
According to its survey of retail investors, among nearly two-thirds (63%) who have never bought ETFs say they don’t understand how they work in comparison with other investments. Around a quarter (24%) say they have never heard of ETFs.
However, HANetf’s study showed there is potential demand from investors that do not use ETFs– around 56% say they would be happy to learn more about the thematic approach to investing from financial services firms.
The survey also found that around one in 10 (11%) retail investors who have never invested in ETFs say they will consider doing so in the year ahead.
Tom Bailey, Head of ETF Research at HANetf comments:
“ETFs have seen an amazing adoption rate since their invention around 30 years ago. However, there is still a long way to go in terms of not just increasing adoption but improving knowledge, as the results of the survey show. But we believe that investors will continue to become familiar with ETFs and their benefit over legacy fund structures.”
Source: ETFWorld.co.uk
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