As a way to cater toward the growing advisors and investors’ needs, Charles Schwab has taken steps to look for what is most in demand. For example, they found that 62% of advisors believe their core portfolio positions are the most important thing that they’re focused on, and 40% of advisors told Charles Schwab that 70% to 100% of their client portfolios should be held in core investments.
When developing core portfolios, investors have also increasingly turned to passive investments, and among passive investments, ETFs are leading the group. Furthermore, it is the younger demographics that tend to favor the ETF investment vehicle, as compared to their older investor counterparts.
“The younger advisors and the younger clients really see ETFs as an even bigger part of their portfolio than the population of advisors at large. We actually see 90% of millennials tell us that ETFs are a critical part of their portfolio,” De St. Paer said.
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