The Investment Association (IA) has given the green light for exchange traded funds (ETFs) to join the IA sectors.

BREAKING: we've just announced that ETFs will now be joining the IA sectors from the first quarter of 2020. https://t.co/VkG7OZQGsl

— The Investment Association (@InvAssoc) May 23, 2019

Savers and their advisers will be able to compare ETFs against the 3,500 funds already in the IA’s 37 fund sectors from the first quarter of next year.

The ETFs will be placed within the existing IA sectors, which enable comparison between open ended funds by dividing them into groups of similar funds based on factors such as asset class, investment strategy and geographical region.

With over 200 ETFs eligible to apply, the IA is now inviting formal applications from ETF providers for their funds to be classified into the sectors. Consistent with the current approach, only ETFs that are either UK domiciled, or are EU UCITs with HMRC reporting fund status will be included.

Commenting on the inclusion of ETFs in the sectors, Galina Dimitrova, Director of Investment and Capital Markets at the Investment Association said:

“We want to ensure that the IA sectors reflect the full range of products the asset management industry has to offer savers around the world. ETFs are a growing part of this market and their inclusion in the sectors will enable consumers to compare across a wider variety of products.”

Source: IA