Launch Pad: ETF

Investors can now build their own exchange-traded product portfolio and manage their asset allocation, according to ETF Securities which has announced the launch of a portfolio simulator.

Frank Spiteri, head of retail distribution strategy at ETF Securities, said: “We anticipate an increased use of these investment products by advisers offering fee-based services.”

• The simulator is designed to open up the ETF market to retail investors on the lookout for “highly liquid, cost-effective and transparent investments”

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• It can be used to help advisers speak with clients about ETFs

IFA verdict

David Penny, Taunton-based IFA at Invest Southwest

“There is a place for ETF-type products but I don’t think they are for the mainstream. Recent history has shown they are not always what they appear to be and their tracking has not been as efficient as it could have been. We would only recommend to our higher net-worth clients with good knowledge of the risks that ETFs present.”