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25 January 2016

Latest independent research from Defaqto shows the growth in passive funds over the last 10 years. Passive investments can be either exchange traded or have the more traditional unit trust / open ended investment company (OEIC) structure. In the case of exchange traded, assets grew from $79bn globally in 2000 to nearly $3tn in October 2015. The more traditional passive open ended funds in the UK, meanwhile, have grown from around £23bn to £100bn over the last 10 years, with the passive fund market share almost doubling.

Patrick Norwood, Insight Analyst – Funds at Defaqto, says:

“The passive funds area of investment has seen strong growth over the last decade or so, especially on the exchange traded side, and this growth shows no signs of slowing. One of the main reasons for this is the generally lower cost of passive solutions compared to their active equivalents. It will often make sense, however, for client portfolios to contain both passive and active investments.”

Defaqto’s Passive funds market update is CPD accredited to inform advisers about passive investing and help them to keep up to date with this growing area of investment.

The publication is free to download at defaqto.com/advisers/resources/publications-list/passive-funds-market-update/