The issue of physical versus synthetic replication has left investors with more questions and suspicion than clear responses. However, to focus on the above would be narrow minded when choosing the right investment for your portfolio.
On Tuesday 15 March, during the Edhec Risk Days that took place at the Brewery in London, the first TrackInsight award ceremony rewarded the four most efficient blockbuster ETFs in major exposures widely used by institutional investors.
The Exchange Traded Fund (ETF) market is growing, and passive investors need to have reasonable grounds for choosing this investment vehicle as well as robust selection criteria. Mr Bonelli highlights that Exchange Traded Fund selection should be carried in an investor-specific framework founded on statistical measurements related to tracking quality relevant to each investor.