Overall, ICI research found that the typical mutual fund investing household made an average income of $80,000, compared with $130,00o for ETF users. [ETFs Seen Hitting $2 Trillion by 2015: Research]
“In some respects, you could think of ETFs as digital music, in terms of the way they represent the emerging and disruptive technology,” Mr.Magoon said.
ETFs only represent about 7% of assets under advisement across all distribution channels, and account for 16% among independent advisors. Mutual funds still represent 41% of all assets under advisement management, and about 53.5% are accounting for independent broker-dealer-rep assets .[Have an ETF Investing Plan to Avoid Trading on Emotions]
ETFs are able to give investors full portfolio transparency, a better tax rate, and the ability to trade throughout the day as one would a single stock. These features are attractive in this market climate, as tactical strategies become necessary and volatility is an issue. [Leadership Shift in Sector ETFs]
Tisha Guerrero contributed to this article.