How we use ETFs in our portfolios

PASSIVES

Charlotte Richards finds out which sectors wealth managers access using ETFs.

Already well established in the US, ETF providers such as Vanguard and Lyxor have been gaining traction in the UK and European markets over the past few years. According to the IMA, 2011 saw the highest net retail sales for tracker funds on record, jumping to £1.9bn from £1.7bn the previous year. The trend implies a significant increase in investor interest – but what are the benefits of ETFs and how are wealth managers using them within their clients’ portfolios? Gina Miller, founding partner of wealth management firm, SCM Private, is a fan of ETFs. “There will always be an active...