It seems exchange traded funds (ETFs) are the investment vehicle of choice for many advisers. According to a survey conducted by Schwab Institutional, 78% of independent advisers are using them today, and of these advisers, 32% say they will allocate more to ETFs over the next six months. Only 19% of advisers indicated that they will not invest in ETFs in the near future.
The advisers’ dedication to ETFs contrasts their usage of other investment vehicles such as private equity and hedge funds. Only 32% of advisers currently invest in private equity deals, and of those advisers, 7% plan to invest more over the next six months. While 31% of advisers currently invest in hedge funds, just 8% of those advisers plan to invest more in hedge funds over the next six months. More than half of the advisers surveyed said they have no plans to invest in hedge funds or the private equity arena.
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.