ETFs ‘could spark next financial crisis’
An economics consultancy has warned that ETFs contain a design flaw and could well be the catalyst for the next financial crisis.
An economics consultancy has warned that ETFs contain a design flaw and could well be the catalyst for the next financial crisis.
The growing popularity of index investing is only just starting to be felt in the world of responsible investing but as the market for plain vanilla trackers becomes increasingly crowded, what does the future hold for ESG passive products?
Passive investing has made a rapid rise over the past couple of years. When it comes to sustainable investing, however, index-based funds are still relative newcomers.
Equities have inarguably been the best growth trade of recent years, so why have global funds, which supposedly cherry pick the winners, consistently struggled?
£963m (€1.3bn) flowed out of UK equity funds on a net level over the month, compared to an average of £238m in inflows across the previous 12 months, while Europe ex-UK funds topped the best-sellers list with £663m in inflows compared to an average of £11m per month for the previous 12. “The last time…