Demand for the ‘cheapest of the cheap’ remains fierce, according to Morningstar
Most have lagged behind their relevant Morningstar indices, so investors should be clear what they are investing in and why
ETFs overseen by fund managers who pick stocks continue to gain ground on index followers
Revenues suggest fund industry has been able to leverage increased competition to extract lower fee deals
Wimple life; sperm whale alphabet; stupid markets
Investors favour index trackers over stock pickers as they make a tentative return to markets
Allocations represented only 16% of total new money garnered by ETFs, down from 65% during highs of 2022
Flows jump on both monthly and quarterly basis helping assets to surge past $750bn mark
Good governance is not necessarily a guide to a company’s environmental credentials
Only 52% of vehicles that cut fees over the past five years saw increased flows, about the same as for all ETFs
Enjoy the benefits of being small and imperfectly formed
Mutual funds saw net outflows of $950bn over the same period
Funds become cheaper, but questions remain about green credentials
Australian pension fund CIO discusses sustainable investing amid political uncertainty
Managers drop sustainability labels from products amid scrutiny from clients and regulators
Morningstar data suggests just six exchange traded funds from top five providers will be hit by the tax this year
France’s stipulation for its sustainable ISR label could lead to billions of euros of divestments by pan-European vehicles
Exchange traded funds backed by covered calls draw investors in search of steady income
‘Risk-on’ wave of cash brings overall ETF monthly flows to the second-highest ever recorded
Morningstar findings are in stark contrast to other fund categories where passive funds tend to outperform over time
Buying high and selling low meant investors earned 2.4% a year while total returns were 7.3% a year
Exotic strategies . . . in real life confound investors into costly mistakes
Hope springs eternal
Morningstar data for the year to June 30 shows superior returns in all but one category
Growth comes despite wider downturn in demand for trend-based investing