Additionally, the Schwab study revealed that 55% of investors want to see ETFs included in their employer-sponsored retirement accounts, but only 12% have the option right now.
When describing the most important factor in picking ETFs, the investors pointed to expense ratios. [ETF Fee Wars: Looking Beyond Expense Ratios]
“Most investors generally understand that ETFs tend to offer diversification at a low-cost, but many still need more insight and education on how best to use them, the risks involved and potential tax implications,” Flynn added.
The study was an online survey, with 1,010 respondents between the ages of 25 and 75 that have a minimum $25,000 in investable assets, are somewhat familiar with ETFs and have purchased ETFs in the last two years or consider purchasing ETFs in the next two years.
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.