Exchange traded funds (ETFs) have attracted $2trn in the US, but despite the sweeping away of commission that was expected to open up the British market, UK advisers are reluctant mirror their American cousins. Alex Kerry looks at why...
ETFs have been a monumental success since the first US listing in 1993. Globally over the last ten years, assets under management in ETFs have grown by 600% to over US$3trn. But in the UK, the growth of ETFs is limited mainly to the institutional arena; we have not seen their adoption by retail markets and among advisers. Many UK advisers remain entrenched in the use of active vehicles. This situation is even more curious when you consider S&P data that shows actively managed UK equity funds have routinely failed to beat their benchmark, with three-quarters of managers in this categ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
