The decline in active investing has been a huge boon for ETFs and may continue to support ETF growth. Since 2010, ETF trading has accounted for at least 25% of consolidated trading activity, compared to about 15% in the years leading p to the recent recession.
Large investors are also becoming a big factor in the growth of ETFs. According to Deutsche Bank, institutional and retail investors own 47% and 38% of ETF assets for asset allocation purposes, respectively.
Looking ahead, industry observers are waiting on how the newly inaugurated President Donald Trump will handle the new Department of Labor rules. If enacted as announced, the rules could be a catalyst to push many advisors toward lower cost structure of ETFs over active mutual funds, increasing the adoption of ETFs across the advisor channel.
Financial advisors who are interested in learning more about CFP/CIMA accredited panels on the online conference can register for the February 8, 2017 ETF Trends Virtual Summit.