Leo Wealth’s ETF Reliance Exposes Passive‑Investing Blind Spot

On Thursday, Aleksey Mironenko, who holds the title of Global Head of Investment Solutions at Leo Wealth, appeared on ’s ETF IQ Asia programme to outline a strategy that currently sees exchange‑traded funds comprising roughly sixty per cent of the firm’s client portfolios, a proportion that he presented as both intentional and reflective of contemporary demand. He explained that his selection methodology privileges low‑cost, highly liquid products that match predefined risk‑return profiles, arguing that such criteria ostensibly safeguard client objectives while simultaneously simplifying portfolio construction for advisors overwhelmed by a proliferating array of active alternatives.

Nevertheless, the decision to allocate the majority of client assets to passive instruments raises questions about the depth of active oversight within Leo Wealth, especially given that a diversified approach would ordinarily incorporate a more balanced mix of manager‑driven securities to mitigate concentration risk inherent in a predominantly index‑based exposure. Mironenko further noted that client education efforts focus on illustrating the cost‑efficiency and tax‑advantage of ETFs, yet the narrative conspicuously omits discussion of the potential for market‑wide liquidity shocks that could impair the very vehicles touted as low‑risk solutions.

The episode therefore underscores a broader institutional trend wherein firms, in pursuit of scalable solutions, default to passive vehicles without adequately addressing the systemic vulnerabilities that arise when large swaths of capital are funneled into homogenous products, a vulnerability that regulators have repeatedly warned could exacerbate market stress during periods of heightened volatility. In the absence of a clear framework that balances the appeal of cost‑saving passivity with rigorous active risk management, Leo Wealth’s heavy reliance on ETFs exemplifies a predictable shortfall in fiduciary practice that, while technically compliant, arguably betrays the very client‑centric ethos that such investment firms profess to uphold.

Published: April 30, 2026