ETFs have become the investment vehicle of choice for financial advisers in the United States, but here in the UK they have been relatively slow to take off among the adviser community.
No, ETFs are not the only type of product advice firms should be using, but they do provide a simple and efficient way to invest in broad market indices at very low cost, and advisers should know far more about them than they do.
Throughout 2018 Elston Consulting plans to host a series of workshops aimed at advisers who want to learn more about ETFs and the part they can play in client portfolios.
The first one will be staged at Amba Hotel in London’s Charing Cross on Thursday 25th January, and it’s being sponsored by BMO Global Asset Management and Invesco PowerShares. This particular workshop will focus on equity income ETFs, how they’re classified and how you should go about choosing one.
Elston’s Head of Research Henry Cobbe (pictured) says: “What’s interesting is that there are actually seven different equity income indices for the UK market. They’re all constructed slightly differently, and that means they have different rules and different methodologies. That translates into different top-ten holdings, different risk and return exposures, and different biases inherent in those indices.
“This event will take a deep dive into those methodologies, and help advisers understand how to choose an ETF and how to compare them.”
Places at the workshop are limited, so if you do want to attend on the 25th, you should sign up here:
For more information about the event, watch this video interview with Henry Cobbe:
Robin Powell is an award-winning journalist specialising in investing and personal finance