Are you a type-A, do-it-yourself kind of investor? Exchange traded funds (ETFs) may be just what you’re looking for. The ETF market has experienced a surge in interest and more “self-directed” investors are leading the charge, one study has found.
According to Cogent Research, U.S. households with investable assets of at least $100,000 are putting more money into ETFs, reports Jennifer Ablan for Reuters. Additionally, almost two-thirds of U.S. investors bought ETFs without the aid of an advisor.
Last year, global ETF assets pushed past $1 trillion, and in the United States along, assets jumped 46% to $777 billion.
ETF investors are younger than other investors, with an average of 53 and investable assets of $1.1 million, whereas non-ETF purchasers have an average age of 57 with investable assets of $663,000.
Christy White, Cogent Research co-founder, stated that 40% of current self-directed ETF owners plan to increase their use of ETF products, compared to only 26% of advised ETF owners.
Cogent Research has found that The Vanguard Group is “best positioned” to capitalize on self-directed investors because the fund provider brings in a more loyal ETF consumer base. Still, other big names – like Charles Schwab entering the space and iShares partnering up with Fidelity – want a piece of this market, says John Meunier, Cogent research co-founder. Other ETF providers viewed favorably among ETF investors include Claymore, Pacific Investment Management Co. (PIMCO), and PowerShares.