The use of ETFs for asset allocation has burgeoned since the financial crisis, but investors are now seeking a wider set of products, as Matthew Craig reports
In recent years, the importance of asset allocation to investment performance has become more widely recognised and arguably another reason why investors should consider the benefits of ETFs. One ubiquitously quoted piece of investment research shows asset allocation explains 90% of investment returns. This has led many investors, from pension funds to wealth managers, to spend more time and money on asset allocation at a strategic and tactical level. As a result, more sophisticated approaches, such as risk budgeting and liability-driven investing, are now employed as part of asset allo...
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