Still, Lisa Cohen, CEO of Momentum Partners, believes that “really good advisors should be able to prove value by using both [ETF and traditional fund products].” ETFs are not simply alternatives to mutual funds, rather they enhance investment strategies by providing access to hard-to-reach areas like commodities, international and other niche markets.
The results of this study don’t jibe with past ones, which have revealed that advisors do plan to use ETFs more in coming years. A study this year by Cogent Research with 1,500 respondents showed that many advisors expect to reduce their clients’ holdings of mutual funds to 27% by 2011, down from 30% today and 35% in 2007. By 2011, they expect ETFs will make up around 14% of their portfolios, or 8% more than now.
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.
