Mark Northway: Has the passives industry become its own worst enemy?

Debate must focus on value not cost

clock • 3 min read

The focus on cost in the passive industry creates damaging misconceptions, writes Mark Northway. Here he explains why price might win the battle, but value will win the war

A battle on fees, a war on price or a campaign against charges - whichever way it is framed, the debate about passive funds and price is often far more superficial than it deserves to be. The age-old debate rages on - active managers claim that stock picking expertise, which they suggest leads to outperformance, warrants higher charges; the passive world says it can deliver commensurate returns at a fraction of the cost.  But the passive industry may have become its own worst enemy in debating price on the investment battlefield, often using price as an overly simplistic differentiato...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Watch Professional Adviser's Working Lunch with Baillie Gifford - Emerging Future: Rethinking the World's Growth Engine

Watch Professional Adviser's Working Lunch with Baillie Gifford - Emerging Future: Rethinking the World's Growth Engine

Catch up on the discussion

Professional Adviser
clock 13 October 2026 • 1 min read
Fifty years after 'Bogle's Folly', what comes next for financial advice?

Fifty years after 'Bogle's Folly', what comes next for financial advice?

'Indexing will continue to grow, but the wrapper through which investors access it will change'

Gillian Hepburn
clock 12 October 2026 • 4 min read
Chris Justham: Why the industry must 'entertain and engage' investors

Chris Justham: Why the industry must 'entertain and engage' investors

‘We can’t just offer them a dry cracker and ask them to chew it down’

Chris Justham
clock 07 October 2026 • 3 min read