Asset Management

Why ETFs are a handy tool for pension funds

Cost savings, liquidity and regulation are just some of the reasons institutional investors are surging into the investment vehicles

Tools hanging on pegboard
Tools hanging on pegboard Photo: Getty Images

As assets in exchange traded funds continue to swell, asset managers are experiencing greater demand from pension funds that are keen to use the products to bolster their passive investment exposure.

ETF assets have grown to roughly $734bn in Europe, according to data from consultancy ETFGI, with assets increasing by almost 30% since the start of the year.

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