ETF Trends
ETF Trends

Do wealthy investors use exchange traded funds (ETFs) in their portfolios? It turns out, wealthy investors who use registered investment advisors are only indexing 3.8% of their marketable securities. These investors are seeking performance that exceeds market indices, and opt for a combination of separately managed accounts and actively managed mutual funds, reports Darla Mercado for InvestmentNews.

In comparison, individual investors hold 10%-15% of their assets in index funds, while the wealthy hold 1.0% in broad-based U.S. markets, and 2.8% to international markets. ETFs are favorite among larger investors. On average, they make up about 3% of their assets, compared to their smaller counterparts, who have 0.6% in ETFs.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.