In addition, investors are becoming more wary of investment fees, and the lower fees in passively managed products have helped draw greater investment interest. [Investors Like ETFs’ Low Fees as Active Managers Lag Benchmarks]
“The cloudy economic outlook suggests that this trend may continue,” Leonberger said in the article. “Whether it is a short term uncertainty such as the fiscal cliff or a longer-term matter about the future of a regional currency (Europe), it is conceivable that the market will remain a risk on / risk off trade over the next few years. Therefore, we may see continued flows into passively managed funds in the equity markets.”
For more information on ETF indexing, visit our indexing category.
Max Chen contributed to this article.
