Currently, “passive” indexing strategies account for 30% of total assets traded by institutional investors while these ETFs only make up 6% to 8% among retail investors, Latham added. [What are ETFs?]
“Especially among individual investors, the usage and ownership is really low,” said Beth Flynn, vice president of ETF platform management at Schwab, in the article. “As more and more people understand the potential benefits that ETFs can offer them in their portfolio, we’ll see more clients adopting them.”
Scott Burns, head of ETF research at Morningstar, believes BlackRock will have a hard time pulling market share from rivals like Vanguard or Charles Schwab, which have been cutting prices to attract ETF investors.
For more information ETFs, visit our ETF 101 category.
Max Chen contributed to this article.