ETFs are becoming increasingly popular among private investors and are set to grow in this space, Credit Suisse says.
Credit Suisse UK's Private Banking Business head of investment solutions Dennis Geelan says one reason for the growing interest may be that indexing allows fund managers to pinpoint risk. ETFs can provide benchmark returns while the risk budget is reserved for pursuing alpha. As portfolios are tailored to the investor's profile, ETFs are also a useful tool for shaping a specific strategy. One ETF trend Geelan identifies is a large pickup in commodities, fuelled by the appeal of holding physical assets. He says: "Clients definitely become interested when you mention physically backe...
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