The industry body, whose members oversee £7.7trn, is inviting providers to formally apply for ETFs to be classified in the sectors. Over 200 ETFs are eligible, being either UK domiciled or Ucits with HMRC reporting status. Additionally, only physically-replicated ETFs will be included.
IA director of investment and capital markets Galina Dimitrova (pictured) said: “We want to ensure that the IA sectors reflect the full range of products the asset management industry has to offer savers around the world. ETFs are a growing part of this market and their inclusion in the sectors will enable consumers to compare across a wider variety of products.”
The ETFs will be placed in the existing 37 IA sectors according to asset class, investment strategy and geographic region.
When the IA launched the consultation in November 2018, ETF committee chair Adam Laird said the move could ramp up pressure on active fund managers to outperform their cheaper passive counterparts. The consultation ran until 1 February this year.