ETFs: Essential Building Blocks for High‑Quality Investment Advice
ETFs have long outgrown their status as niche products. They have evolved into fully‑fledged building blocks of modern investment advice. Yet in practice, their apparent simplicity is often underestimated. Anyone who wants to use ETFs correctly and effectively for their clients needs in‑depth, practice‑oriented knowledge.
With the programme “Everything you need to know about successful index investing and investing in exchange traded funds (ETFs)”, along with the short Introductory e‑learning on ETFs, Febelfin Academy provides you with the insights you need to use ETFs thoughtfully, responsibly and strategically in your advisory practice.
Why have ETFs become indispensable today?
According to lecturer and expert Stephan Desplancke, the rise of ETFs is no coincidence. Stricter cost transparency requirements under MiFID II have fundamentally changed the investment landscape. Clients now see clearly what investing costs them and rightly expect those costs to be justified by quality and added value.
Many traditional funds struggle to consistently justify their higher fees compared to the market. Thanks to their low‑cost structure and transparent design, ETFs are therefore gaining ground rapidly. Stephan also observes how banks and advisory firms are increasingly centralising their investment offering through profile funds and model portfolios, in which ETFs play an ever‑greater role.
There is also another crucial factor: the client. Since Covid in particular, interest in ETFs has risen sharply, especially among younger investors. They are better informed, ask more targeted questions and expect their adviser to guide them with expertise.
ETFs are simple? A common misconception
ETFs are low‑cost, transparent and traded on a daily basis. But it is precisely these characteristics that make a critical approach essential. ETFs track the market without any built‑in protection. This means that equity ETFs can also fall sharply during geopolitical tensions, economic recessions or major market corrections. Bond ETFs are not risk‑free either.
Another frequently underestimated risk is concentration. Some ETFs are heavily exposed to a limited number of stocks or sectors, which can reduce diversification. Anyone who equates “passive” with “risk‑free” is mistaken.
That is why Stephan stresses the importance of:
sufficient diversification, including within ETF portfolios
active monitoring of supposedly passive instruments
thorough selection, with attention to costs, taxation and the choice of the right index
In Europe alone, there are more than 2,000 ETFs available. Without adequate knowledge, it quickly becomes difficult to see the wood for the trees.
Time to challenge persistent misconceptions
One frequently heard myth is that the strong growth of ETFs will lead to a bubble that is bound to burst. According to Stephan, this idea has no factual basis. Assets under management in European ETFs currently represent less than 10% of total market capitalisation.
ETFs are also far from being “simple products”. They are exchange‑traded structures that track an underlying portfolio — and that portfolio can be highly complex. Moreover, there is a growing range of active ETFs that can respond to market opportunities at relatively low cost and deliver genuine added value.
The key message is clear: passive investing is not synonymous with investing without reflection. Especially in a volatile and rapidly changing world, an active and well‑considered choice of ETFs remains essential.
How does the training make this tangible?
The ETF ecosystem may seem technical, but according to Stephan, this knowledge is precisely what sets you apart as an adviser. Clients notice when you go beyond the basics and value expertise that inspires confidence.
In the e‑learning and training programme, technical concepts are made tangible through:
concrete, practice‑driven examples
realistic case studies
insights drawn from Stephan’s many years of experience at iShares, the global market leader in ETFs
in‑depth knowledge of how investment operations work within Belgian banks and advisory structures
You will learn how ETFs are truly used in portfolios today — and how to translate them into high‑quality investment advice.
ETFs as building blocks, not an end in themselves
A strong advisory practice is not about choosing between “ETFs versus funds”, but about finding the right combination. Stephan always uses ETFs within a portfolio context, alongside traditional funds. Depending on objectives, risk profile and cost budget, both can be highly complementary.
With a thorough understanding of ETFs, you can position them as building blocks within a broader strategy. And that is precisely what makes the difference between product selling and genuine advice.
Start with the right knowledge
Do you want to build a solid foundation first? Then the short Introductory e‑learning on ETFs is the ideal starting point. Do you want to deepen your expertise and learn how to use ETFs strategically? Then the full training programme is the next essential step.
