ETF Trends
ETF Trends

A new study shows that advisors are becoming more interested in exchange traded funds (ETFs), and they’ve got their eyes on a few key sectors, as well.

I was at the Schwab Impact conference earlier this week, where they announced the results of this study. Go to the Impact website to see who spoke. The overwhelming theme is that more and more advisors are embracing ETFs. Here are some stats on what Schwab actually found:

ETFs are the single most popular fund type that financial advisors are considering buying in the next six months. Advisors singled out a few sectors, as well – tech, energy and financial-related ETFs all got the nod, writes Cinthia Murphy for IndexUniverse. The report, however, showed that advisors are turning away from health care and consumer staples.

Advisors have a bullish six-month outlook for the S&P 500. Around 72% of advisors believe a rise in the index’s performance will happen in the next six months.

The latest survey also revealed:

  • 39% of advisors will increase investments in ETFs, up from 35% last year
  • 22% are considering buying commodity funds, up from 8% last year
  • 15% will pick up high-yield bonds through various funds, down from 24% a year ago

For the most part, advisors foresee that the economic recession will be done with in the next 12 months with an expected increase in consumer spending and consumer saving. A majority thinks that unemployment will continue to rise, however. More than one-fourth of advisors expect an increase in interest rates in the next six months.

Max Chen contributed to this article.

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.