Regulations on asset managers and financial advisers have increased in number and scope over the past 10 years. Much of which has been for the better.
New Design and Distribution Obligations (DDO) which came into effect on 5 October 2021 will change how many types of financial products, including ETFs, can be sold. Under the regulations, ETF Securities is both a product issuer (a company that builds funds) and a distributor (a company that sells funds). We understand our obligations under the new regulations. Which include the below.
What is DDO?
Put simply, it tries to make sure that fund managers are creating funds that are “fit for purpose” and built with investors’ interests in mind. It also tries to ensure that companies selling or recommending funds – including financial advisers, stockbrokers and wrap platforms – are accurately presenting them to investors.
DDO covers many types of financial products—not just funds. It also covers credit cards, insurance, some superannuation, home loans—and more. It was brought into being thanks to both the 2014 Financial System Inquiry and the Hayne Royal Commission. Both found that some financial products had been badly built and sold.
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ETFSTrade idea – Conflicting signals in the U.S. - Time for caution?
ETFS S&P 500 High Yield Low Volatility ETF (ZYUS)
ETFS Physical U.S. Dollar ETF (ZUSD)
The U.S. economy continues to surprise to the upside with
markets rebounding strongly.
Yet rising inflation, subdued long-term rates and geo-political
risks remain a concern.
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ETFS Trade idea – The Aussie yield ETF that challenges active managers
ETFS S&P/ASX 300 High Yield Plus ETF (ZYAU)
In the wake of S&P Dow Jones Indices recently published
SPIVA® report, this week we have taken a look at how our ETFs
have fared against active managers over time.
This note highlights ZYAU, which has produced strong excess
returns since inception and outperformed many well-known
active managers.
Investors looking for cost-effective excess returns from domestic
equities should consider evaluating ZYAU.
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