Why ETFs will benefit in a post-RDR world

ETFs

ETFs will be an important part of any multi-asset solution in the new regulatory environment, writes HSBC's Farley Thomas.

There is a lot of comment that ETFs are great for retail investors. There is also a suggestion that ETFs will prosper post-RDR, when commission bias is expected to be a thing of the past. I am not sure about any of this. Retail investors will be putting more and more of their money into something completely different from ETFs in my view. And this will nevertheless be great for ETFs. Leaving aside for a moment who is behind it, investors are certainly embracing ETFs. ETF assets under management have grown 50% a year on a compound annual basis over the past decade. If we look at where thi...