UK investors 'need more ETF education'

03 September 2010 at 16:05

UK investors 'need more ETF education' A new survey of UK investors into the appetite, understanding and use of exchange-traded funds (ETFs) has found that the majority of professional and individual investors need more information about ETFs.

According to the study of 870 individual investors and 150 professional investors, carried out by Morningstar, counterparty risks are a "major concern" for a considerable minority, though brokerage fees are not.

The poll also found that access to stable, passive ETF portfolios is important to investors, while many ETF investors are trading infrequently and for rebalancing purposes only.

Morningstar's associate director of European ETF research Bradley Kay commented: "Even among active investors, we found ETFs are being used in quite a passive way, for example to overweight in a particular asset class and with infrequent trading thereafter. In all, it would seem that ample room remains to engage investors and advisers on this investment option."

It comes after the Standard & Poor's Fund Services study showed that the financials sector performed well in the first seven months of 2010.

Posted Tony Miller ADNFCR-3006-ID-800051608-ADNFCR

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