Progress indeed… but understand the risks

CONTRARIAN INVESTOR

Spring is in the air and life is returning to the fastest-growing segment of the asset management industry - the index-tracking ETF space.

Over the next few, fun-packed, election-filled weeks, advisers should expect to see a continuing stream of fund launches and new arrivals to the market. We should soon be welcoming our first 2X leveraged ETF on mainstream equities, courtesy of stalwart Deutsche DBX. Source, a relatively new player, has also just launched an innovative range of European Stoxx sector ETFs that focus on strategies such as tracking cyclicals, defensives and consumer staples. Both of these funds will be welcomed by many sophisticated investors, with the usual caveats around the use of strategies and daily lev...