Fidelity calls for 'PNAV' to become key passive comparison metric

Index funds have seen demand grow rapidly in recent years and Fidelity's platform FundsNetwork has seen an 85% rise in net sales of its 273 index products. However, as headline costs are cut to the bone, wealth managers and advisers have found a number of other barriers are preventing them from adequately comparing performance between the various products. According to a Fidelity study, the most commonly sought factor when choosing an index fund is ‘efficient replication of index performance', measured via a fund's tracking error. The problem arises when valuation points of a fund ...