Contrarian Investor: Time for a passives revolution in 2017?

Threat to traditional asset managers

Contrarian Investor: Time for a passives revolution in 2017?

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,...

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