The rise of 'active ETFs' - a range of products combining active and passive approaches - is the latest major development in the giant passives space in the US. But how is their growth impacting the overall funds market and could they take off in the UK?
Nowhere in the world has the divide between active and passive flows been more pronounced than in the US funds market, where active funds saw their first year of net outflows in 2015, while passives attracted some $400bn of inflows. This marked a key turnaround point in the active/passives fund war, with the latter now accounting for more than 25% of the total US funds market - up from around 12% ten years ago. The gap between US active and passive flows is now the widest it has ever been. M&G's Willcocks - It's active 'and' passive, not 'versus' It has been a steady climb for a p...
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