IA accused of 'creating more confusion' as it consults on including ETFs in sectors

Respond by 1 February 2019

Tom Eckett
clock • 5 min read

Industry commentators have warned the inclusion of ETFs in the Investment Association's sectors could lead to the mean average returns becoming "meaningless" as passive funds skew the figure, but also noted it will leave 'closet-trackers' nowhere to hide.

Today (30 November), the IA revealed in the paper The Investment Association Sector Scheme Consultation on Inclusion of ETFs  it is looking into whether ETFs should be allowed into its sectors, which currently consist of active mandates and tracker funds. Under the proposals, ETFs that are either UK domiciled or are EU UCITS with UK reporting status and are physically replicated will be eligible to be included in the sectors. This means over 200 ETFs will be included but exchange traded notes (ETNs) or exchange traded commodities & currencies (ETCs) that have different structures an...

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