View more on these topics

Investors spurn synthetic ETFs

Investors are shunning synthetic-based exchange-traded funds in favour of physically-backed ETFs, according to research from Morningstar.

It polled 593 people, comprising 501 individual investors and 92 professional investors, mostly advisers, for its November UK ETF survey.

Ninety per cent of all investors are wary of synthetic, swap-based ETFs, saying they are somewhat or very concerned by counterparty risk.

This is up from 82 per cent in March. Ninety per cent also say they prefer physicallyreplicated funds over synthetic ETFs, up from 74 per cent.

The most popular asset classes were equity-investing ETFs, with traditional broad equity index-tracking products among the most popular.
Morningstar says ETFs are typically found to represent up to 20 per cent of a current user’s portfolio.

Page Russell director Tim Page says: “Our problem is that, while information provided by product providers is getting better, the fundamental problem is it is difficult to know on a day-to-day business what collateral synthetic ETFs have got.”

Recommended

What’s the plan?

Robert Burns told of “the best laid schemes of mice and men” going awry at the hands of unforeseen circumstances. It is impossible to account for every eventuality in life, particularly in the world of investment, but employing a detailed plan that considers numerous variables is the best way to ensure these schemes come to […]

European markets make early gains

European markets have bounced back from yesterday’s losses to make small gains in early trades on Thursday. At 9.30am, the FTSE 100 was up 0.7 per cent to stand at 5173.66, while the German Dax and the French Cac 40 are both up over 1.5 per cent. The news comes as Italian prime minister Mario […]

2

Elevate and Nucleus lead platform table

Axa Elevate and Nucleus have topped The Platforum’s leader board for the third quarter of 2011, followed by Skandia. The Platforum examines platforms’ performances on a quarterly basis, based on around 1,500 adviser reviews. Platforms are rated according to user feedback, financial strength, momentum and price. The study shows that total platform assets under administration […]

A modern horror story

Every day a quick scan of the news reveals some new horror that will change the lives of those involved forever – the unlucky accident on the way to work, a tragic illness that cuts a young life short or the holiday accident that leaves more than just a scar to cope with. We barely […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com