Industry Updates

Investment Association to add ETFs to sectors in April 2021 following delay

The IA is also splitting its Global Bonds sector to help accommodate the huge influx of over 500 ETFs

Tom Eckett


The Investment Association is set to include ETFs in its sectors for the first time in April 2021 following a delay to the move earlier this year.

As part of the move, the IA has split its Global Bonds sector into 14 new categories in order to ensure it remains fit for purpose for investors.

From 19 April 2021, the IA will incorporate over 500 ETFs across its various sectors. In order to be eligible for inclusion, ETFs must be physically replicated.

The decision to split the global bonds sector came after the high level of interest from ETF issuers looking to add their strategies to the various sectors.

If the global bonds sector had been left unchanged then the number of strategies would have increased by more than 50%.

Investment Association green light is a game changer for UK ETF industry

Jonathan Lipkin, director for policy, strategy and research at the IA, commented: “Including ETFs within the IA sectors will help investors more easily find and compare the full range of investment funds available to them.

“As part of the process to include ETFs, we are also reviewing the overall structure of the IA sectors. The division of the Global Bonds sector from April next year will ensure savers are better able to make like-for-like comparisons when choosing their investments.”

The decision to include ETFs in its sectors was first announced in May 2019, however, a greater level of interest “than expected” from ETF issuers forced the body to delay the move in February.

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