Active funds under pressure to perform as IA adds 530 ETFs across sectors
Stock pickers will feel the heat as adding ETFs is likely to improve average performance across sectors
More than 530 ETFs are being added to the Investment Association’s (IA) sectors from 19 April in a move fund buyers think ramps up pressure on active funds to improve performance.
ETFs from 11 providers, including Amundi, Blackrock, Fidelity International, First Trust, Franklin Templeton, HSBC Asset Management, JP Morgan Asset Management, Legal & General Investment Management, Lyxor, Vanguard and Xtrackers, are being added to one of the IA’s 52 sectors.
IA director for policy, strategy and research Jonathan Lipkin said the move recognises that ETFs are a “rapidly growing part of the UK fund markets” and will help savers and advisers make comparisons and choose funds to meet their long-term financial goals.
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