ETFs: making their mark

The asset management industry has mixed feelings about the long-term threat exchange traded funds pose to index-hugging unit trusts and Oeics

If ETF providers are to be believed, the end may be in sight for passive funds and index huggers, those who demand an active management fee but fail to walk the walk when it comes to performance. On a statistical basis, there may be some validity to their argument. The IMA recorded net outflows of £2bn from UK-domiciled funds 2008. Sales have recovered since; net inflows were £23.6bn in the black for the first 11 months of 2009. But AUM are only just back to pre-crisis levels, thanks more to rallying markets that renewed investor confidence. In contrast, BlackRock reports continued ri...