Legal & General Investment Management (LGIM) has launched a suite of six 'core' equity ETFs into the European market, which the firm claims to "avoid the risk of crowding" within markets.
The group said the risk of short-term volatility in markets is rising as a result of ETFs being forced to turn over their portfolios at the same time. As a result, LGIM has designed a new index that can help protect investors from "unpredictable behaviour of crowded trading that is experienced by equity indices commonly tracked by most core ETFs". LGIM head of ETFs Howie Li (pictured) said: "It is right to expect more than just low-cost from core equity ETFs. Index managers need to be more active in mitigating the risks of crowded indices and engaging with companies for the long-term ...
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