Are ETFs the best route to low-cost investing?

ETFs

clock

Nick Blake, head of retail at Vanguard Asset Management, examines the differences between ETFs and traditional index mutual funds.

ETFs continue to gain ground in the UK and the debate over their usefulness continues to rumble on. We believe physical ETFs represent nothing more than a different route to invest in an index. ETFs combine the low cost, broad diversification and low turnover approach of a conventional index mutual fund with the pricing and trading flexibility of a common stock. These attributes have led some to dub ETFs a ‘better invention’ than traditional index mutual funds. ETFs have also received an additional boost from the RDR consultation paper which highlighted the benefits of the products “to t...

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

Join Investment Week in London to discuss the future of ETFs

Join Investment Week in London to discuss the future of ETFs

Amundi, BNP Paribas, UBS and Research in Finance confirmed to speak

Katrina Lloyd
clock 23 June 2025 • 2 min read
European asset managers using Taiwan as testing ground for active ETFs

European asset managers using Taiwan as testing ground for active ETFs

Race for active ETFs hots up

Linus Uhlig
clock 23 June 2025 • 3 min read
Active ETFs defend stewardship capabilities in face of shareholder engagement crisis

Active ETFs defend stewardship capabilities in face of shareholder engagement crisis

Record number of active ETF launches in 2025

Sorin Dojan
clock 18 June 2025 • 6 min read
Trustpilot