Institutional investors remain largely bullish on U.S. equities for 2015. However, stock exchange traded fund investors should still temper expectations as volatility could dampen returns.

According to a recent NEPC survey, 96% of institutional investors are bullish on equities for the year, with 54% of respondents pointing to a 6% to 10% return, reports Mark Melin for ValueWalk.

Specifically, 36% of institutional investors believe U.S. equities will outperform in 2015 while 13% said emerging market equities could outperform.

ETF investors also have a number of options to capture the two markets. For instance, investors can use the SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA), SPDR S&P 500 ETF (NYSEArca: SPY) and PowerShares QQQ (NasdaqGM: QQQ), which tracks the Nasdaq-100, to track the major U.S. benchmarks.

For broad U.S. market exposure, the Vanguard Total Stock Market ETF (NYSEArca: VTI), Schwab U.S. Broad Market ETF (NYSEArca: SCHB) and iShares Core S&P Total US Stock Market ETF (NYSEArca: ITOT) essentially cover the entire U.S. stock market in a single investment option.

However, investors should temper their outlook. Michael Feroli, chief U.S. economist at JPMorgan Chase, downwardly revised estimates of U.S. economic growth, reports Peter Coy for Bloomberg.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.