How ETFs became the tool of choice for young investors

Exchange-traded funds have become a global investment phenomenon. Their main selling points? Low fees and the recurring collective underperformance of active fund managers.

Young investors are using index funds to bet on market rallies and global trends. Simon Letch

Tony FeatherstoneContributor

Apr 1, 2021 – 12.00am

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The exchange-traded fund (ETF) market has boomed during COVID-19 as a new generation of investors uses index funds to bet on market rallies and global trends.

“In the past 12 months, the number of ETF investors in Australia has almost doubled to 1 million,” says Christian Obrist, head of iShares Australia. “We expect this uptake to accelerate.”