Additionally, the ETF space and asset growth will continue to expand.
“Retail ETF growth will continue to be fueled by an increase in fee-based business, expanded asset class exposure, a wider distribution net, some flight from mutual funds and actively managed ETFs,” according to the note.
Inclusion of ETFs into defined-contribution plans will also stoke ETF growth.
“From a DC plan standpoint, TDFs are poised for significant growth, including advisor constructed custom solutions. The industry may have overlooked it, but these custom solutions will increase the use of ETFs,” the note added.
For more information on ETF fund flows, visit our ETF performance reports category.
Max Chen contributed to this article.