Contrarian Investor: Time for a passives revolution in 2017?

Threat to traditional asset managers

clock • 4 min read

Regular readers of this column will know I am rather partial to the idea of the exchange-traded fund - largely, I must admit, as a way of reducing the total cost of ownership.

My hunch is 2017 could be the year traditional asset managers wake up to the reality that ETFs are a real existential threat to their business model, even here in Europe. Put simply, too many active fund management bosses have been hopelessly complacent. Passive may be an even bigger market disruptor than they first thought. Let me kick off by quoting the estimable Matt Hougan, an ETF expert in the US: "ETFs are no longer the alternative investment choice. They are now the number one most recommended product by financial advisors [in the US], surpassing mutual funds, closed-end funds,...

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

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
Goldman Sachs AM expands ESG range with active green bonds ETF

Goldman Sachs AM expands ESG range with active green bonds ETF

TER of 0.55%

Sorin Dojan
clock 18 June 2025 • 2 min read
Trustpilot