ASB Securities is launching a new campaign to raise awareness of ETFs, which are one of the fastest-growing securities internationally but not yet widely traded in New Zealand.

NZX launched nine new ETFs last month, taking its total number to 19.

Busby said ETFs offered a straightforward way to diversify investments for New Zealanders who traditionally invested heavily in property.

“They may be suitable for a wide range of people; from those who think diversifying their portfolio themselves is too complex to those who are looking for something a bit easier to manage. Buying an ETF can be cheaper than buying multiple stocks individually, or paying a fund manager to manage your funds,” she said.

“You often hear that diversifying is important when investing, in order to help spread your risk, but many people are put off because it sounds difficult.”

ASB added the ability to trade ETFs to its online share trading platform late last year.  This means investors can now access ETFs listed on both the NZ and Australian markets online.

Previously ETFs had only been available from the bank via phone. International ETFs are still available that way.

ASB would not reveal the total number of investors who have invested in ETFs through its channels, or the level of funds under management.

But the bank said there had been a 40% increase in the number of clients trading ETFs between the 2014 financial year and 2015. The value of the ETFs traded increased 80% year-on-year. There had also been a 27% increase in the number of ETF trades, of which more than 70% are now traded online.

Busby said the growth in trading activity and the number of retail investors buying ETFs via ASB Securities suggested New Zealand investor appetite for ETFs was increasing.