Professional fund buyers are still struggling to understand ETFs and to justify the investment in these instruments to their clients.
According to a panel of experts at Morningstar’s ETF conference held earlier this month, even institutional investors in the UK, such as insurers, do not understand these fairly new types of products. At the same time, providers are launching more complicated products in an effort to stand out from the crowd – be it smart beta, managed portfolio ETFs, or niche products investing in the more obscure areas of the market. But investors, it seems, are too focused on the ongoing charge figure (OCF) and pay little attention to the many other aspects of ETF investing. As one of the panell...
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