While 97% of respondents are familiar with the mutual fund structure, only 64% of investors said they are familiar with ETFs. Additionally, 18 of respondents aren’t even sure if they are currently holding an ETF in their managed portfolio.
Looking at the growing number of smart-beta ETF strategies now available, about 89% of respondents revealed that they would likely invest in a fund with strategic beta attributes. However, only 34% are familiar with smart-beta ETFs, which suggests that the demand is there but education continues to be lacking.
Additionally, half of respondents rely primarily on a financial advisors for advice, but advisors do not always take the lead in conversations about ETFs. Around 42% of investors who have discussed ETFs with an advisor have initiated the conversations, so it is not enough to want to invest in ETFs. Investors should be actively looking into their portfolios if they are unsatisfied with their current strategies.
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.