Wealth manager view: What we look for in an ETF

PASSIVES

Ben Gutteridge, divisional director, fund research at Brewin Dolphin, explains the due diligence process he applies before recommending physical or synthetic ETFs.

Last year the Financial Stability Board’s warning on ETFs prompted a barrage of responses from all areas of the investment community. It also, no doubt, sent a shiver down the spine of many investment managers and clients given their increasing popularity within portfolios. To claim that ETFs are a potentially toxic investment is not something that should be taken lightly, indeed we hope such claims will raise the level of due diligence conducted by potential investors, as some products may fall short of ‘acceptable practices’. However, we believe headlines that suggest ‘ETFs pose a g...