Investors urged to top up ETF exposures

Yasmine Raso

Senior Journalist, Financial Newswire

2 September 2022

Exchange traded fund (ETF) provider, ETF Securities, has urged investors to use their tax refund as an opportunity to add ETFs to their investment portfolio as an “efficient and cost-effective” method of investing.

ETF Securities said data from the Australian Tax Office (ATO) said around 10 million Australians received tax refunds averaging $2,900 last year, with bigger refunds expected this year due to the increased low- and middle-income tax offset.

“A tax refund represents a return of some of our hard-earned income and we want to make sure that when we invest it, we get value for money,” Kanish Chugh, Head of Distribution at ETF Securities, said.

Chugh recommended investors keep an eye on technology-focused ETFs, after the sector experienced a recent bounce-back.

Chugh said ETFs like ETF Securities’ FANG+ (FANG), Morningstar Global Technology (TECH)and Semiconductor (SEMI) had returned between seven and 12 per cent in July, with holdings ranging from Tesla and Netflix to Microsoft and ASML.

“The long-term outlook for the leading tech stocks remains positive, as they continue to innovate,” he said.

“Short-term, there may be some ongoing volatility, given market noise around rising inflation and interest rates. But in the long term, these companies have very strong earnings.”