FE Trustnet is to launch a ratings system of passive funds for retail investors, ranking ETFs and index trackers alongside each other for the first time.
The new FE Passive Fund Rating service will go live on 22 April , and will initially cover over 250 ETFs and index trackers available for sale in the UK, although coverage is expected to broaden out in the future in response to demand. Funds will be ranked using a quantitative methodology based on three key criteria: tracking difference, tracking error, and fund size, in an effort to move away from a sole focus on costs. Products will be awarded between one and five 'Passive Crowns', based on their ability to track their respective indices. Funds with the lowest tracking difference...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- 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
