How RIAs Are Utilizing ETFs

Looking ahead, 50% of RIAs anticipate greater usage of ETFs over the next three years, a level consistent with past survey results.

“Overall, these responses paint a picture of exchange traded funds continuing to gain share at the expense of other types of investment vehicles, but given the significant usage of ETFs already the rate of increase should be expected to slow going forward,” according to Wealth Management.

Many also look to Morningstar as their go-to source for ETF-related research, with and Mroningstar ETF usage at 54% and 42%, respectively. Other resources that RIAs look to include Lipper’s service at 9% and ETF Trends at 12%, and competitors and ETF Guide were used by fewer RIAs.

RIAs and investors are becoming more knowledgeable about the ETF investment tool. Only 17% and 20% of advisors stated they have below average knowledge of ETF liquidity and ETF Trading, respectively. Additionally, intraday indicative value calculation and distribution schedules were both notable areas of improvement in advsior knowledge.

For more information on the ETF industry, visit our current affairs category.