Investors fleeing bruising global markets are scooping up exchange traded funds and moving from active to passive funds in search of lower cost, more transparent products. (PDF)
In the past year ETF providers have seen substantial inflows into a range of funds. Exchange traded funds attracted global inflows of about $200bn (£136bn, €152bn) in 2008, up from $178bn at the end of the previous year, according to Financial Research Corp.
“ETFs have proved to be the right tool at the right time. We have seen an increase of traditional active managers using ETFs in the past year as they provide beta at low cost for the portfolio core,” says Manooj Mistry, UK head of db x-trackers at Deutsche Bank.
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