As financial advisors shift strategies in an ever-changing market environment, exchange traded fund providers are seeking new ways to engage investors, potentially developing ways to help advisors achieve their goals.
In a recently published research report, How to Communicate with ETF-Centric Advisors, ETF Trends and Koski Research found that ETFs continue to be the first choice of investment vehicles among modern advisors within all channels in the coming year. They are most likely to invest new assets in ETFs and increase their portfolio allocation in ETFs.
In a survey of registered investment advisors, wirehouse advisors and independent broker-dealer advisors, respondents revealed that their number one choice for new investments are ETFs, with 59% most likely to invest in ETFs over the next 12-months and 75% expecting to increase ETF portfolio allocations in 2017.
Wirehouse advisors were particularly receptive of ETFs, with 69% saying they are most likely to invest new assets in ETFs and 83% expecting to raise their portfolio allocation in ETFs.
The increased demand may be attributed to wirehouse advisors’ move to fee-based structure, which favors low-cost structures.