Rising through the downturn

ETFs' unique qualities make them one of the few products that stand to gain from the recession. However, the prevalence of commission-based advice models could mean retail investors miss out. Emma Oakman reports ETFs have historically enjoyed considerable growth during market downturns. The relative attractiveness of cheap, liquid and transparent indexation strategies has been particularly clear in volatile and illiquid markets. Increased cross-asset class correlation in falling markets added to their appeal. As the global economy heads into another recession and active managers increas...