Investment data and research firm FE Trustnet is to launch a passive funds ratings system for retail investors, ranking ETFs and index trackers alongside each other for the first time.
The FE Passive Fund Rating service, set to go live on 22 April, will initially cover some 250 ETFs and index trackers available for sale in the UK, though coverage is likely to broaden in response to demand. Funds will be ranked using a quantitative methodology based on three key criteria: tracking difference, tracking error, and fund size, in an effort to move away from a sole focus on costs. Products will be awarded between one and five 'Passive Crowns', based on their ability to track their respective indices. Funds with the lowest tracking difference and tracking error will sco...
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