Photo Gallery: Gallery: Advisor Use of ETFs: Lessons From the Trenches

WealthManagement.com staff

Feb. 28, 2013

How Many Clients, How Much Money?

Among all advisors who use ETFs, only about 40% of their clients are in the funds and less than a quarter of their total client assets.
What Types?

Most advisors use ETFs that invest in industry sectors. Capitalization-tiered equity and niche strategy ETFs are used by almost half.
How Are They Used?

Few advisors use ETFs as purely a trading vehicle. Most are either in for the long haul or combine buy-and-hold with a trading strategy.
Why Use Them?

The vast majority of advisors are in ETFs for risk diversification.
How Do You Learn?

Over half of advisors rely on sponsor-supplied literature to learn about ETPs.
How To Teach Clients

Almost nine out of ten advisor rely on sit-down, face-to-face meetings with clients to teach them about the investments.
What Else Would You Do?

If they weren't using the funds, seven out of ten advisors would put the assets in actively or passively managed mutual funds. Ten percent would put the assets in separately managed accounts.
Why Not?

43% of advisors say they don't know enough about ETPs to use them. Only 6% don't trust them.
What's The Future?

More than half of advisors say they may, or likely will, use ETPs in the future.
ETP Shut Down?

Very few advisors have experience with an ETP held by their clients being shut down by the sponsor.

WealthManagement.com surveyed over 500 advisors and asked their views and experiences with exchange-traded funds and notes. Read about the survey results and reactions from advisors and consultants.

Download a full copy of the report for free from WealthManagement.com's Thought Leadership Series.

Gallery: Advisor Use of ETFs: Lessons From the Trenches