Are ETFs and tracker funds becoming a bigger threat to active management?

The Big Question: Are ETFs and tracker funds becoming a bigger threat to active management?

The London Stock Exchange saw record ETF trading in October as investors turned to passive vehicles. But are they becoming a threat to active funds and managers? Experts from Square Mile Investment Consulting & Research, Morningstar, Towry, Neptune Investment Management, Ingenious Asset Management, Raymond James, Charles Stanley, UBS, Aviva, SCM Private and Oyster look at the rise of trackers.

    Simon Evan-Cook, senior investment manager, Premier Asset Management   Active risk if you copy the index The rise of passive funds is a threat to one part of the active fund industry, but an opportunity for another. The ‘active' funds (and I use the term loosely) that need to watch their backs are the closet trackers. By copying the index, but charging full active fees for doing so, these funds represent the poorest value offerings across the industry. Happily, investors are now waking up to this, deciding to go completely passive and pay less, or go genuinely active an...