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

Rathbones brings together responsible investment in Centre of Excellence

Rathbones brings together responsible investment in Centre of Excellence

Combines ethical and sustainable research capabilities

Patrick Brusnahan
clock 29 May 2026 • 1 min read
Why active management matters more for income investors

Why active management matters more for income investors

Significant implications for advisers and investors relying on passive income strategies

Rory Sandilands
clock 29 May 2026 • 4 min read
Can the energy crisis power renewables past their headwinds?

Can the energy crisis power renewables past their headwinds?

Renewables continue to see headwinds

Ian Aylward
clock 28 May 2026 • 3 min read