Dan Kemp, CIO of the EMEA business at Morningstar Investment Management, has highlighted an array of benefits from the rapid rise of passive investments, although he also warned of risks such as overtrading.
His comments come as exchange-traded products (ETPs) attracted record inflows in the first quarter of 2017, taking in $189.1bn globally and far outpacing the previous record of $137.8bn in Q4 2014. Kemp (pictured) said although people view the growth of passive investing as a challenge for active managers, particularly in terms of fee pressures, price wars are good for the end investor. Morningstar to launch analyst ratings of ETFs Meanwhile, passive funds' systematic trading in stockmarkets can also create opportunities. He explained: "This wholesale move to passive funds is ac...
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