At a Money Marketing’s round table, Sandiford said IFAs are “chewing his hand off” for ETFs and passive options at the moment.
“Advisers who were investment fidgets for the last umpteen years are now saying they have to have a process whereby if the market goes up they cover all the bases and ETFs are the cheapest way of doing that.”
But Sandiford added that too many platforms are charging an initial charge on these funds. He said: “What you should not have is ETFs feeling like active funds because of the initial and ongoing charges.”
However, Skandia head of proposition marketing Peter Jordan said ETFs are often more expensive than other funds when you load platform costs and advice costs together.
“People have the notion that these are super-cheap vehicles but actually when you load all the costs there is not a heck of a lot of difference between ETFs and trackers,” he said.