Data also show increased usage of ETFs among advisors, regardless of AUM. A study by Cerulli Associates released earlier this year showed RIAs’ use of ETFs increased 27% annually over the past five years. [Advisors Increase Use of ETFs]
Earlier this year, Cogent Research and Invesco’s (NYSE: IVZ) PowerShares unit, the fourth-largest U.S. ETF issuer and one of the leading purveyors of smart beta funds, said a quarter institutional decision makers indicate they are already using smart beta ETFs, implying significant room for growth. Speaking of growth, “over the next three years, institutions plan on increasing their use of smart beta ETFs more than any other category (including market-cap weighted ETFs),” according to PowerShares and Cogent. [Advisors Increasing Use of Smart Beta ETFs]
Institutional investors are also boosting their ETF usage. A study conducted by Greenwich Associates and sponsored by BlackRock (NYSE: BLK), the world’s largest asset manager, ndicates institutional usage of exchange traded funds is growing and will continue to do so. The study shows 46% of institutional ETF investors surveyed allocate 10% or more of total assets to ETFs with 47% saying they expect to boost ETF usage over the next year.
The results of that study were released in May.
ETF Trends editorial team contributed to this post.