BMO Global: The factors driving passives' 'vast range of performance'

'Know your ETFs'

Tom Eckett
clock • 2 min read

BMO Global Asset Management's latest Multi-Manager TrackerWatch survey has detailed the "vast" divergence in performance investors need to be aware of when investing in passive products.

The firm found, in its annual BMO Multi-Manager TrackerWatch, the difference between the best and worst passive funds in the Lipper Global Equity - US sector was 70.1 percentage points - the best fund returned 32% while the worst vehicle lost 38.1% over one year. There were a number of factors, the report said, which was driving the variety of performance such as tracking error, index selection, the skill of the manager to track the index within the constraints of their methodology and the management fee. Whitechurch's Haynes: Industry pressure on fees pushing us to passive products ...

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