IE Conjecture podcast: Discussing ETFs
Demand for ETF products is likely to increase through 2013 as investors continue seeking ways to gain cost effective yield, but there are some significant caveats, such as how the proposed EU financial transaction tax might affect this type of investment vehicle.
Overall, the ETF industry is likely to persist in its objectives of supplying cost effective risk adjusted returns in an era when management fees and expenses are increasingly under the spotlight.
The impact of the UK retail distribution review on demand and supply of ETFs could yet provide a template for how the vehicle type will do across Europe in an era of ever increasing transparency demanded of providers of all types of investments. For example, ETFs could benefit hugely from transparency of costs, but the full proof of the RDR impact is yet to be seen, argue panellists on the latest InvestmentEurope Conjecture: Matthew Arnold, senior ETF strategist at SPDR ETFs; and Kate Hollis, director at S&P Capital IQ Fund Research.