Fund buyers warn on potential pitfalls when investing in income ETFs

Amid rising popularity of products

Tom Eckett
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Income ETF investing
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Income ETF investing

Fund selectors have cautioned investors could be getting "unexpected exposures" when investing in income ETFs, following a plethora of launches.

ETF providers have been keen to offer low-cost solutions for income-hungry investors, with a number expanding their ranges in recent months to encompass UK-focused as well as global offerings. Last month, Lyxor added to its income ETF range with the launch of a Japanese product, while BMO GAM rolled out three enhanced income ETFs in July. These products have also been popular with investors, with Lyxor's income ETFs attracting €293m so far this year, compared to €184m for the whole of 2016, while the BMO MSCI UK Income Leaders UCITS ETF saw a 37% AUM increase.  Concerns  However,...

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