Has the popularity of passives started to peak?

PASSIVES

clock

Passives have had another strong year, yet the proportion of advisers looking to increase their allocation is waning. Henry Brennan asks: has the use of passives started to peak?

Figures from the Investment Management Association (IMA) show the number of available tracker funds is up 11% on the start of the year, rising from 63,921 to 70,852 by the end of the third quarter, comprising 9.6% of the industry total – a record high. Their increasing prominence has led investment services provider Morningstar to issue a ratings system for passive funds as a reaction to their growing popularity. Yet, a survey of advisers carried out by Schroders indicates the industry may be approaching a "ceiling" where passives are concerned. Two thirds of the 328 advisers asked...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Looking beyond the oil shock

Looking beyond the oil shock

'A few weeks ago, there was genuine reason for optimism'

Fahad Hassan
clock 27 July 2026 • 4 min read
What does a new PM and chancellor mean for investments?

What does a new PM and chancellor mean for investments?

'What is important is what happens over the long term'

Jasper Thornton Boelman
clock 23 July 2026 • 4 min read
SJP rebrands global equity income fund and reduces charges

SJP rebrands global equity income fund and reduces charges

Appoints Acadian as investment adviser

Patrick Brusnahan
clock 22 July 2026 • 1 min read