Exchange traded fund listings on the London Stock Exchange reached a record high last year, mirroring investors’ cautious outlook for 2019.
The Financial Times reports a total of 323 ETF products, including commodities and exchange traded notes, were listed on the LSE in 2018.
ETFs – low-cost listed funds that look to hug the benchmark rather than outperform it – are steadily gaining investor confidence as market uncertainty derails interest in active investments.
Volatile stock markets last year saw heavy outflows from active funds, while UK investors pulled more than £2bn from open-ender funds, including index tacker funds, in November alone.
More broadly, Investment Association data shows passives made up almost half of all global equity assets under management last year.
Around £4.6trn is estimated to be currently held in ETF assets globally, the IA adds.
Equity funds notably struggled in 2018 in what was a year of continuous outflows from active funds. However, more than £3bn flowed into UK ETFs in October and November last year.
Legal and General Investment Management, which manages nearly £1trn of assets globally, flagged plans to bring 20 new ETFs to the market by early 2019, while JP Morgan hired a specialist ETF distribution team last year looking to bolster passive investments in Europe.
ETFs that prioritise environment and social targets are also continuing to build momentum in the market.
Money Marketing previously reported 31 ESG ETFs holding nearly £4bn in assets under management entered the market between January and May 2018.