Additionally, the study discovered that 31% of institutional funds and 33% of asset managers are using ETFs to add liquidity to a portfolio and to reduce trading costs. Usage among both groups is up 10% in 2011.
“Liquidity has become a governance issue since the global financial crisis. Institutional investors are applying their acquired knowledge from that period to their search for effective liquidity solutions. ETFs can be an effective tool for them,” Liz Tennican, Head of US Institutional Sales for iShares at BlackRock, added. “We are finding that institutional investors are expanding the types of asset classes when they utilize ETFs, for example, expanding further into international single countries and U.S. and international fixed income.”
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.
