A recent survey has shown that when it comes to advisor loyalty, Vanguard Group has displaced BlackRock’s iShares unit as the provider they’re most loyal to.
The criteria for advisor loyalty is measured by overall market penetration, level of commitment and share of wallet, according to Cogent Research. Daisy Maxey for The Wall Street Journal reports that The report was released earlier this month and based on a national survey of 1,560 investment advisors. [Vanguard Ready to Take on ETF Industry Leaders.]
The report used a standardized loyalty metric, known as a Net Promoter Score, which was developed by consulting firm Bain & Co. Vanguard received a score of 33% while iShares, received 20%. [Pension and Wealth Managers Dig ETFs.]
Vanguard is best known for their lower expense ratios in some of their major broad based ETFs. iShares is the global industry heavyweight, dominating the ETF space in terms of assets under management, which total $379.5 billion. Vanguard is the third-largest ETF provider (behind State Street) with $113.3 billion in assets under management. [Basic ETF 101.]
The average amount of assets Vanguard currently captures among the advisors it serves has more than doubled to $5.5 million per user in 2010, which now rivals iShares’ per-advisor assets under management of $5.7 million.
Tisha Guerrero 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.