The trackers include mid-cap UK equity and UK corporate bond trackers, sectors rated by Square Mile for the first time, and other trackers that the firm now believes are fit for investment.
The funds have been added to Square Mile’s ‘Academy of Funds’ recommended product list, which now includes 61 trackers.
Passive products have featured on Square Mile’s list since August 2015.
The new entrants have been lauded for their low costs, focus on indices suitable for retail investors, efficient management and the fact they are sufficiently large to be managed effectively.
Square Mile head of research Victoria Hasler said recommended funds are typically run by firms that demonstrate a firm commitment to running passive strategies.
The newly added funds include examples of bond trackers with reduced duration or exposure to interest-rate risk.
Despite earlier remarks that passives are likely to struggle this year due to rising rates and persistent volatility, Hasler said she recognised their importance in portfolio construction.
“We recognise that passive investments, now 23% of assets under management in the UK (FCA Interim Report 11/16), often have a key role to play in portfolio construction,” she said.
The trackers getting the thumbs up are revealed on page 2….
