According to a separate Broadridge report, RIA mutual fund and ETF assets hit $1.62 trillion as of the end of 2013, surpassing total assets held by the top four wirehouse firms. Looking within the RIA industry, mid-sized RIAs with $100 million to $1 billion in assets represent the best prospect for fund providers.
Independent RIAs with $300 million to $1 billion in assets under management, on average, devote 16.1% of assets to ETFs compared to 8.1% allocated to ETFs by RIAs with more than $2 billion in AUM. [Smaller RIAs Embrace ETFs]
“By understanding the unique characteristics of these firms in terms of product usage, the client base they serve, and their general investment philosophies, funds can better position their products and grow assets,” Polefrone added.
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.