Broadridge publishes 2020 ETF outlook study
January 24, 2020

Broadridge Financial Solutions has today published its 2020 ETF Outlook, a study into the behaviour of financial advisors around exchange-traded fund investing. While largely focused on the US market, it highlights the following interesting developments as universally interesting.

• Younger advisors tend to prefer low-cost ETFs to actively managed mutual funds.

• The use of ETFs is not evenly distributed across financial advisors; there are notable differences in adoption by channel.

• Europe is the region of most interest for foreign market ETFs.

• ETFs currently make up 27 percent of actively managed mutual funds in adviser asset allocation and are set to surpass actively managed mutual funds (29 percent) in the next few years.

• Over 35 percent of advisors use ETFs as a core part of the portfolio.

• More than a third of advisors do not have strong confidence in their knowledge level of ETFs.

• As ETFs become the primary choice for advisors, asset managers may be challenged to reconfigure fund line-ups and product development. Meanwhile, distribution heads will need to think through how to support sales and marketing.





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Broadridge Financial Solutions has today published its 2020 ETF Outlook, a study into the behaviour of financial advisors around exchange-traded fund investing. While largely focused on the US market, it highlights the following interesting developments as universally interesting.

• Younger advisors tend to prefer low-cost ETFs to actively managed mutual funds.

• The use of ETFs is not evenly distributed across financial advisors; there are notable differences in adoption by channel.

• Europe is the region of most interest for foreign market ETFs.

• ETFs currently make up 27 percent of actively managed mutual funds in adviser asset allocation and are set to surpass actively managed mutual funds (29 percent) in the next few years.

• Over 35 percent of advisors use ETFs as a core part of the portfolio.

• More than a third of advisors do not have strong confidence in their knowledge level of ETFs.

• As ETFs become the primary choice for advisors, asset managers may be challenged to reconfigure fund line-ups and product development. Meanwhile, distribution heads will need to think through how to support sales and marketing.



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