Investing is something that everyone should do; however, it is very important to get the right advice, from companies like SoFi.
“That’s why it’s important for people to just get started and ask for advice when they need it. We are all like that.”
The investment relationship
Bond Gard’s Rioli said the company, which employs 12 people in the U.S. and the U.K. and operates on the largest trading platform in Europe, is prepared to act rapidly to establish a market for its funds.
Rioli said that that the firm will probably take less time to build out its business than other investors, because of its global reach and also because the funds are unlikely to be developed slowly.
“We have a very strong track record of setting up ETFs in this world,” Rioli said.
“So yes, we can’t afford to spend too long and we don’t want to run out of capital, either. So I think we have to be aggressive, and we have to get into it now.”
For its part, ETFs have attracted investments from two-thirds of the world’s funds, according to ETF Futures, which tracks the ETF industry.
“Given the growing customer base, the profitability and size of institutional institutional investors, and the opportunity to attract and gain access to all such investors, ETFs will continue to grow in a significant way,” ETF Futures said in a report.
“Now, much as with mutual funds, the world’s investors will have numerous ETFs to choose from.”
Some worry the funding of ETFs will raise large fees for retail investors, although it has been argued that high-frequency trading has reduced fees due to the effectiveness of algorithms to avoid losses.
Ian Goodman, senior fellow and director of financial services policy at the British Bankers Association, said the rise in retail investors’ awareness of the importance of investing is particularly important.
“This means that they are much more likely to understand that investing in ETFs can be a wise move,” he said.
“It should also be noted that investment products such as ETFs are only trading in a few markets in countries with liberal financial regulation.”
Goodman pointed to emerging markets, where many believe the government and central bank can intervene and influence the markets, as potentially problematic.
“Asset managers in the developed world are responsible for the vast majority of their own client investment portfolios and can therefore best assess whether an ETF investment scheme is suitable,” he said.
The BBVA study found that ETFs offer a significant opportunity for investors with large portfolios, who would prefer the security of holding the index itself.