Fidelity International has stepped up the passives price war with the launch of six low cost Irish-domiciled equity index funds and the reduction of pricing on three existing UK-domiciled index funds.
Active bonds suffered €7bn in outflows along with active commodities and convertibles, hitting Europe’s asset management industry for the month of February.
From fees to tracking error to “two-way flows”, fund buyers and unsuspecting investors can be caught off guard by some of the inside language used by the ETF industry, warns 7IM senior investment manager Peter Sleep.
Not all FTSE All-Share trackers are priced equally and the costliest passive exposure comes from the Virgin UK Tracker with a whopping 1% charge. Click through the gallery below for the five cheapest funds on offer and help investors get more for less.
Passive investors pay scant regard to the fundamentals of individual securities and free-ride on the work of active investors with implications for financial stability, price discovery and index correlation, according to a paper from the Bank of International Settlements.
Global asset manager VanEck is to acquire Netherlands-based Think ETF Asset Management, more than trebling the number of Ucits ETFs the New York firm has available in Europe from six to 20.
US equity exchanged traded funds (ETFs) were the preferred product for European investors looking at the ETF market in 2017, accounting for 15% of the market’s assets under management (AUM), according to Thompson Reuters Lipper research.
The active versus passive debate could be history by 2025, according to Blackrock’s Joe Parkin.
Flows into European equity exchange traded products (ETP) rebounded in 2017, after an annus horribilis in 2016, and the trend is set to continue thanks to MiFID II’s transparency requirements in 2018, according to reports.
Europe’s passive funds will be given a boost in 2018 at the expense of active funds thanks to Mifid II’s drive for transparency on costs, according to research firm Cerulli Associates.