Aviva's Fitzgerald: are ETFs really that cheap?

Peter Fitzgerald, multi-manager at Aviva Investors, discusses his top futures trade this summer and why he thinks exchange traded funds (ETFs) are expensive.

The fund of funds manager said his first port of call is to look at passives before checking the active options available.

He said there are certain cases where he has to use futures of ETFs to gain market exposure, in cases where it is hard to find active managers who can outperform or where they can provide the right style tilt.

However, despite widespread views ETFs are cheap, Fitzgerald believes they could actually be lower cost and increasing competition in the industry will spur this improvement.