Investors in the UK are getting more exchange traded funds that are making available asset classes outside of popular stock benchmarks, the Financial Times reports.
The development of the ETF business appears to be following a similar pattern as the United States, where there is about $1 trillion held in the investment products.
Industry analysts expect the UK market to expand in areas like corporate bonds and commodities, reports Elaine Moore for the FT. Additionally, popular new ETF launches reveal that investors are taking up positions in fixed-income and the emerging markets.
Chris Stevenson, vice president at Barclays Stockbrokers, told the FT that while appetite for developed market ETFs remains consistent, investors are also turning toward the emerging markets, more notably China and Brazil, along with income-related funds.
David Bower, head of iShares UK distribution, notes the growing investor desire for fixed-income and physically-backed funds, as well.
“We’ve seen more investors allocate outside cyclical risk assets, primarily equities, and into fixed income assets and gold. That’s been the key underlying trend — a move to safer havens,” Nicholas Brooks, head of research at ETF Securities, said in the report.
Max Chen contributed to this article.
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