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Explosive growth of ETFs a boon for investors but there are risks

Tony FeatherstoneFinance writer

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An expected doubling of the Australian exchange-traded funds market by 2020 will create unprecedented investment choice but could leave those who underestimate the risks of new-style ETFs flying blind into the next market storm.

Exchange-traded funds (ETFs) have become a $US4 trillion phenomenon as more investors worldwide switch from active managed funds that aim to outperform, to cheaper index funds that replicate a market return.

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    Original URL: https://www.afr.com/wealth/explosive-growth-of-etfs-a-boom-for-investors-but-there-are-risks-20180815-h1402z