Nevertheless, many mutual funds have not jumped on the ETF bandwagon – one-third of those surveyed have not included ETFs. Meanwhile, 7% of the participants acknowledged they were “almost exclusively” using ETFs.
The Credit Suisse survey also revealed that hedge funds and portfolio managers continue to see numerous macroeconomic risks like the Eurozone crisis and U.S. “fiscal cliff,” which have contributed to the decline in trading volumes. For the first seven months of the year, U.S. equities saw $156 billion in average daily traded values, or down 10.3% for the same period year-over-year. Credit Suisse said 83% of those surveyed indicate it would take between two to five years for trading volumes to recover.
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Max Chen contributed to this article.