Since the early 1990s, ETFs have drastically transformed the asset management industry. Low cost combined with tax efficiency is a formidable one-two punch. Plus, the popularity of passive index investing makes ETFs a go-to option for many retail investors. Broadridge Financial partnered with 8 Acre Perspective to explore how and why financial advisors (FAs) use ETFs.
A survey of more than 500 financial advisors (FAs) found:
- Highest usage of ETFs within the RIA channel.
- As FAs increase allocations to ETFs, they are most likely to transfer assets from actively managed mutual funds.
- Thematic ETFs have not yet taken off and future demand is tepid.
- Morningstar is by far the most widely used website for ETF information.
The research has been cited in ETF Stream, Yahoo!, and other news outlets.
Note: 8 Acre Perspective was operating as Q8 Research at the time of this study
