Additionally, investment advisers were the largest asset allocators and led year-over-year growth. Investment Advisers allocated 30% of ETF assets to smart beta, reflecting the growing demand for smart beta or alternative index-based strategies in an extended bull market environment.
As institutional ownership rose, the average holding period fell, which may indicate the increased demand for these liquid ETF investment vehicles as a quick and easy way to gain instant access to broad market segments and trends.
Investors also exhibited a preference for asset allocation in ETFs with low holding costs. The general trends toward cheap and low-cost investment vehicles continues to drive demand. Meanwhile, more aggressive traders sought highly liquid ETFs to minimize transaction costs.
For more information on the ETF industry, visit our ETF performance reports category.