The good news is that when a corporate holder does show up in the 13F, it is usually in reference to the company’s retirement funds. Some ETFs are showing up as retirement plan options within 401(k) plans. [Why ETFs Aren’t in More 401(k) Plans]
“That’s an area where we’re seeing ETFs get a little more traction, in addition to corporate pension fund portfolios, “McRedmond said.
Other areas that ETFs would enhance corporate portfolios include when one company is acquiring another; it could buy an industry-related ETF to hedge against value increases during negotiations. A company could also hedge expenses in an ETF that holds materials or commodities that the business is focused on.
Tisha Guerrero contributed to this article.