Fund management

Why pensions are wrong to shun ETFs

Christopher Aldous, chief executive of Evercore Pan Asset, explains why pension funds' belief that ETFs are more expensive than trackers is inaccurate. He says total expense ratios (TERs) can be misleading and a more careful analysis shows ETFs are as cheap if not cheaper to use. Pension funds should instead focus on how useful they are in building a tailored portfolio.