Passives confusion: Ratings firm clash underlines comparison struggle

Passives confusion

Anna Fedorova
clock

As Investment Week reported last year, attempting a comparison of passive funds that goes beyond headline charges has been a bit of a nightmare for fund buyers. Now that ratings services have stepped into the game, one would finally expect some clarity.

But things are not that simple in the passive investing world, and even those analysing the data are unable to reach the same conclusions on key products.  Last week, FE Trustnet revealed a new passive ratings service for ETFs and trackers available for sale in the UK, in recognition of the growing importance of this area of the market for UK investors - and the lack of data available in this field.  When looking at products tracking the FTSE 100 index, FE identified the L&G UK 100 Index fund as one of the worst, with a stated tracking error of 1.7%.   However, a separate report on...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on ETFs

Amundi launches Europe's cheapest All Country World ETF

Amundi launches Europe's cheapest All Country World ETF

TER of 0.07%

clock 18 March 2024 • 1 min read
DWS adds non-US MSCI World ETF to Xtrackers range

DWS adds non-US MSCI World ETF to Xtrackers range

‘Balanced diversification’

clock 18 March 2024 • 1 min read
Value of London-listed ETFs surpasses £1trn for the first time

Value of London-listed ETFs surpasses £1trn for the first time

£1.04trn total

Eve Maddock-Jones
clock 14 March 2024 • 2 min read
Trustpilot