“Individual investors are simply not satisfied with their own knowledge of ETFs and want to learn more” Flynn added. “This combination of high investor demand for ETFs with low understanding makes an obvious case for more tools and better education across the investment spectrum.”
The study also found that investors consider costs as the #1 deciding factor, with 59% indicating expense ratios as “extremely important.” It was also revealed that commission-free trades was a lesser factor, with 43% noting that commission-free is important but not the only factor they consider and 23% only choosing commission-free ETFs.
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.