IFAs choose UK, emerging markets and US tracker funds

Legal & General Investments has revealed that UK, emerging markets, and US index funds are most popular amongst IFAs.

According to research by Legal & General, 80% of advisers would recommend a UK index tracker, 56% would suggest an emerging markets fund while 55% would choose a US index product.

Simon Ellis, managing director of Legal & General Investments, says: “Passive funds can play a large role in any balanced portfolio and it is encouraging to see that advisers are looking past UK equities and using index funds to access overseas equities, especially emerging markets.”

The survey also revealed 44% would recommend an Asia Pacific-focused tracker product. The least popular country among advisers for recommending an index tracker was Japan, with just 22% backing the country. (article continues below)

Ellis adds: “While the UK passive market is a favourite in advisers’ client portfolios, the research makes clear that passive exposure to other markets, such as global and emerging markets and the US is increasingly important.

“When investors want a true reflection of a market with broad exposure across all industry sectors, investment in index funds is a great way to achieve this.”

The survey consisted of the views of 294 IFAs.