ETFs set to specialise even further

The firm's vice president Chris Stevenson says: "We are likely to see more ETFs tracking exotic markets, for example frontier market trackers or funds with more complicated objectives such as absolute return funds." With the volatility of the past three years still fresh in investors' minds, Stevenson anticipates the possibility of instability becoming the market norm. In such an environment, product diversity and attention to asset allocation will be central to investment practice. Stevenson says: "Having a more carefully constructed portfolio that can take advantage of the peaks an...