Wayne Nutland: Don't underestimate the value of active management in multi-asset index investing

Use of ETFs

clock • 3 min read

The expansion of the ETF market to more asset classes, and more granular exposures within asset classes, has made them a useful tool in multi-asset investing, writes Wayne Nutland. Here, he argues how useful active management can be in using the low-cost form of investing...

From their origins of tracking large liquid equity markets, the expansion of the exchange-traded fund (ETF) structure into other asset classes makes ETFs an ideal choice for multi-asset active management. The original exchange-traded funds tracked the large, liquid equity markets and were intended to be used as single exposures, or exposures within an equity market, as opposed to being blended into multi-asset portfolios. Mutual funds tracking equity indices had first been created in the 1970s, and the first equity ETFs were essentially designed as a way of making passive equity investin...

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