Increase in Passive Choice Great for UK Investors

Some index trackers still charge a high price for what they do but there is now a plethora of passive investments available to UK investors

Christopher J. Traulsen, CFA 21 September, 2010 | 10:12AM
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Chritopher Traulsen, Director of Pan-European and Asian Research for Morningstar Europe, write a monthly column for FTAdviser. Below is an excerpt of his latest column, which can be read in full at FTAdviser.com.

You don’t have to search too far back to recall the dark days of few options--and high priced ones at that--for UK investors seeking index trackers.

Indeed, there are still some that charge rather a large sum of money for what they do. Virgin, Threadneedle, Gartmore and L&G, among others, still run UK index trackers charging from 75 to 125 basis points per annum in total expense ratios (TER) for retail shares.

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About Author

Christopher J. Traulsen, CFA  is director of fund research, Europe and Asia, Morningstar.