Financial advisers continue to use mutual funds, but more of them are beginning to use exchange traded funds. In 2003, Financial Research Corp. of Boston surveyed advisers and found all of them were using mutual funds and allocating 52% of assets to the funds. In 2005, they polled advisers again and found 93% used mutual funds and 43% of assets were allocated to funds.
In that time period, ETFs have gained in popularity and have grown to include more investment options in sectors, global regions and other areas, such as currency. At the end of 2005, 44% of advisers were using ETFs and allocating 12% of assets to them.
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