Legal and General Investment Management (LGIM) has launched a product tracking the UK's mid-cap market amid "growing demand" for index funds.
The L&G UK Mid Cap Index fund aims to provide growth by tracking the FTSE 250 ex Investment Trust benchmark, chosen because it has a greater focus on UK-listed businesses than the traditional FTSE 250.
The portfolio has an ongoing charge of 0.14 per cent.
Simon Hynes, LGIM's head of UK retail distribution, said: "Index funds currently represent 13.4 per cent of all IA retail mutual funds under management, up from 11.5 per cent in November 2015, and this is expected to climb further as investors continue to seek cost-efficient market exposure.
"We are seeing increasing demand from advisers and wealth managers in particular, who are looking to build diversified, cost-efficient portfolios for their clients."
He added: “Medium-sized UK listed companies have significant potential for capital growth over the long term, and this fund is a useful tool for investors and advisers to diversify and tailor their UK equity exposure.”
