Morningstar has released the results of its fourth online survey of UK investors into the appetite, understanding and use of exchange-traded funds, with a strong and continuing investor preference for physical-backed ETFs again coming through. 181 investors participated in the survey.
Ben Johnson, Morningstar’s director of European ETF research, comments:
“Despite the efforts made by providers of synthetic replication ETFs to improve the level of transparency and investor protection in their product lineups, respondents remain wary of swap-based ETFs. This is despite the ongoing conversation around counterparty risk recently shifting focus to highlight those risks arising from securities lending within physical replication ETFs. Clearly, despite the many benefits around low cost and ease of tradability, there is still some way to go in providing investors will all the information and transparency they need to feel comfortable with ETFs as a larger component in their portfolio.”