It’s well appreciated that selecting active fund management is a complex matter with a huge number of variables but, for some, the alternative, passive management is seen as a simple matter – a straight tracker or an ETF equivalent.
There are now many advisers who avoid actively managed funds altogether but there are many more who include passives in most client portfolios. The truth is that passive options overall are a growing proportion of retail portfolios yet some of the issues in selecting the right passive vehicles are not widely appreciated.
TCF Investment screens over 1500 passive vehicles to arrive at a short list of just over 110, from which they select the best 20 – 30 to build low cost multi-asset portfolios (either as OEIC funds or bespoke Model Portfolios).
This short ETF guide from Dan Norman of TCF Investment is an insightful look “under the bonnet” of the ETF world.