ETF Trends
ETF Trends

As financial advisors shift strategies in an ever-changing market environment, exchange traded fund providers are seeking new ways to engage investors, potentially developing ways to help advisors achieve their goals.

In a recently published research report, How to Communicate with ETF-Centric Advisors, ETF Trends and Koski Research found that ETFs continue to be the first choice of investment vehicles among modern advisors within all channels in the coming year. They are most likely to invest new assets in ETFs and increase their portfolio allocation in ETFs.

In a survey of registered investment advisors, wirehouse advisors and independent broker-dealer advisors, respondents revealed that their number one choice for new investments are ETFs, with 59% most likely to invest in ETFs over the next 12-months and 75% expecting to increase ETF portfolio allocations in 2017.

Wirehouse advisors were particularly receptive of ETFs, with 69% saying they are most likely to invest new assets in ETFs and 83% expecting to raise their portfolio allocation in ETFs.

The increased demand may be attributed to wirehouse advisors’ move to fee-based structure, which favors low-cost structures.

Further contributing to the rise in ETFs’ popularity, technology developments pushed more people online, and most financial advisors rank themselves among those adapting to technological changes.

“Early adopters of ETFs tend to be more tech-savvy and more entrepreneurial than the average advisory firm. These firms are positioned for future growth and tend to have younger principals and employees in critical positions,” Tom Lydon, publisher of ETF Trends, said.

With technology providing easy access to information, enthusiasms for in-person conferences is waning. The survey found that 39% of respondents participate in in-person conferences, with only 13% preferring in-person conferences. Alternatively, advisors are finding greater efficiencies in webinars and digital research, both rank among the top preferred research sources.

Consequently, ETF providers seeking to engage advisors should gauge their over time, recall, optimize and track advisors communication preferences to foster more meaningful engagements. Sponsors should leverage content experts and consulting teams to educate and help advisors and utilize webinars or other digital events to effectively and efficiently portray a strategy.

More data on subjects such as how advisors use ETFs, technology, and how they connect and communicate is available in the full report.

If you would like a free copy of the How to Communicate with ETF-Centric Advisors report, email Brenton Garen at