Platform inefficiencies over real time trading threaten ETF investors' returns

Investors are calling for more control over ETF trades executed on fund platforms, many of which are incapable of hosting the vehicles or are currently unable to offer real time trading.

The lack of platforms offering live ETF trading is becoming a much more serious concern for UK investors amid increasing equity market volatility, as they could be missing out on returns due to being hampered by daily dealing. The difficulty stems from the fact UK platforms were originally created to trade funds, not securities, and therefore do not have the infrastructure to easily trade ETFs. According to a platform survey published by the IFP's Financial Planner magazine in March, 72% of platforms in the UK market offer ETFs, but only 18% are members of the London Stock Exchange, w...