ETFs are a nest of innovation

Cheap and easy to set up, ETFs are seen as a major breeding ground for innovation over the coming years

With the basic proviso of finding a suitable index to track, ETFs can effectively provide liquid access to any asset class desired. Despite this, the products have yet to achieve mainstream status among UK advisers since the first European listing in 2000. Commentators cite their lack of commission as a key reason for slow take up and expect additional demand to come from changes in the Retail Distribution Review, as advisers shift to fee-based models.  Most providers position their products as portfolio building blocks, playing into the increasingly accepted wisdom that asset allocation...