The ETF journey

Several milestones in the exchange traded funds (ETF) industry are expected in 2010, with global assets under management having recently passed $1trn and the 1,000th product likely to launch soon

ETFs have yet to achieve mainstream status among UK retail investors and advisers since the listing of the first European product back in 2000 but momentum is now increasing. Many commentators have cited lack of commission as a reason for slow take up and expect significant additional demand, driven by changes coming in as a result of the Retail Distribution Review. Meanwhile, another key factor behind the rise of ETFs is growing demand for passive products, with many active managers struggling to generate consistent performance. ETF increase We expect to see a significant increa...