The development of alternative products allows investors to tap asset classes that are otherwise hard to access. But do these new breeds undermine the appeal of ETFs? Helen Fowler reports
It is the hallmark of many businesses that as they mature, so-called ‘alternative’ ideas become absorbed into the mainstream. Whether the same will hold true of the ETF market, where innovative products are frequently appearing, remains to be seen. The $1trn ETF industry used to be made up entirely of plain vanilla products that tracked established indices. While these products still dominate, accounting for the vast majority of ETF assets, increasing numbers of providers are launching more esoteric versions that test the definition of an ETF to its limits. In the last year mor...
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