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Click here to download the 2020 ETF Outlook from Broadridge Financial Solutions, a study into the behaviour of financial advisors around ETF investing.
Key highlights include:
- Younger advisors tend to prefer low-cost ETFs to actively managed mutual funds
- The use of ETFs is not evenly distributed across financial advisors; there are notable differences in adoption by channel
- Europe is the region of most interest for foreign market ETFs
- ETFs currently make up 27% of actively managed mutual funds in adviser asset allocation and are set to surpass actively managed mutual funds (29%) in the next few years
- Over 35% of advisors use ETFs as a core part of the portfolio
- More than a third of advisors do not have strong confidence in their knowledge level of ETFs
- As ETFs become the primary choice for advisors, asset managers may be challenged to reconfigure fund line-ups and product development. Meanwhile, distribution heads will need to think through how to support sales and marketing.
