In its 2014 U.S. Institutional ETF Usage Report published earlier this month, BlackRock notes the “results show that institutional use of ETFs is expected to rise across the board. This trend holds true for both existing institutional ETF investors and those who do not currently hold ETFs.” [Institutional ETF Use on the Rise]
BlackRock and rival Invesco (NYSE: IVZ) are also expected to be big beneficiaries of the smart beta boom.
“The expansion of smart beta will benefit asset managers with businesses centered around smart beta the most. Invesco’s Powershares franchise, which offers smart beta ETFs, will benefit, as will Blackrock. Guggenheim may also benefit given the majority of its ETFs are based on non-traditional indexing,” according to a research note by Moody’s Investor’s Service published earlier this year.
Chart Courtesy: Stock Charts
Tom Lydon’s clients own shares of EFA and IVV.