Gosling's Grouse: Why we should welcome the latest passives price war


Fidelity has kick-started the price war in the index market again this month, and I applaud it for doing so. After all, why should an investor pay double digits for exposure to developed indices?

Thankfully Fidelity is not alone, and its competitors BlackRock, HSBC, L&G and Vanguard all offer cheap products in the same markets. The devil in the charges will be in the detail and there are clearly other issues to take into account when comparing the various products. Morningstar has produced some excellent research on index funds and how to analyse them, which I would suggest advisers look at when they are allocating. Why active vs passive is a false distinction From the Morningstar research, you learn that for an equivalent product, for which Fidelity is charging 6bps for ce...

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