ETF growth potential in dynamic asset allocation

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The potential for ETFs to be used in dynamic asset allocation in precisely defined market segments or styles has not yet been fully exploited, according to the Edhec-Risk Institute.

In its Edhec European ETF Survey 2010, the institute says although the ETF industry has entered a phase of increased maturity, there is still room for growth, with survey respondents seeing a need for new products on emerging markets and alternative asset classes. Edhec-Risk Institute head of applied research Felix Goltz says: "The main finding was we can see the use of ETFs is mainstream now and that is remarkable given the first ETF in Europe was launched 10 years ago. We really see a lot of signs that users have become more aware of the detailed mechanisms of ETFs." He says investo...

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