Furthermore, contrary to popular belief, ETFs have not taken away the need for active managers and the need for this middle market are more valued. Managers are still able to find the right risk profile, asset allocation, know what to invest in and when to get out. ETFs can not do that.
The growth is going on beyond U.S. borders, as about 25.2% of UK wealth managers questioned used ETFs for strategies involving dividends and fixed income. [Special Report: Navigating Higher Rates with Bond ETFs]
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own SPY.