Copy-cat ETFs no threat, say fee-based advisors

20 October 2013
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Wealth Professional, Sophie Nicholls

“BlackRock is essentially taking their existing multi-asset class ETFs and building in a trailer fee to improve their market penetration with the advisory community,” says Cynthia Kett of Stewart & Kett Financial Advisors in Toronto. “For investors, it just means more mutual funds to choose from. However, if investors are do-it-yourselfers, they may be better off buying the ETFs themselves and paying separately for the advice.”

Newer “investors will have heard of BlackRock and/or iShares and believe that they’re receiving the ETFs’ diversification and passive investment style at a low cost,” says Kett. “Yes, they’re getting the diversification and passive style, but the costs aren’t necessarily lower.”

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About Stewart & Kett


Stewart & Kett Financial Advisors Inc.
911- 123 Front Street West,
Toronto, Ontario,
M5J 2M2, Canada
(Adjacent to Union Station)
Phone: (416) 362-6322
Fax: (416) 362-6302