The Evolving ETF: Advisor Use of Exchange-Traded Funds in Client Portfolios

BNY Mellon's Pershing

09/28/2016

The Evolving ETF: Advisor Use of Exchange-Traded Funds in Client Portfolios

This whitepaper explores the why and how behind the explosive growth of exchange-traded funds (ETFs), along with where they may be headed next.

The Evolving ETF: Advisor Use of Exchange-Traded Funds in Client Portfolios outlines findings from a survey conducted by Beacon Strategies LLC to determine current perception and use of ETFs. The results of the survey reveal the following:

  • Of advisors who use ETFs, 64 percent said ETFs are core to their clients’ portfolios
  • Baby Boomers working with advisors are currently the largest users of ETFs by generation
  • 68 percent of advisors who use ETFs said they will increase their use over the next 12 months
  • When choosing a specific ETF, performance is most important (43 percent) and the provider’s brand recognition is least important (2 percent)

This new research and the resulting whitepaper offers a number of surprises about who is using ETFs, their place in investor portfolios, how they are perceived by advisors and their rate of adoption in light of the Department of Labor’s Conflict of Interest Rule.

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BNY Mellon's Pershing

BNY Mellon's Pershing

BNY Mellon’s Pershing and its affiliates provide a comprehensive network of global financial business solutions to advisors, broker-dealers, family offices, hedge fund and ’40 Act fund managers, registered investment advisor firms and wealth managers. Many of the world’s most sophisticated and successful financial services firms rely on Pershing for clearing and custody; investment, wealth and retirement solutions; technology and enterprise data management; trading services; prime brokerage and business consulting.

Pershing helps clients improve profitability and drive growth, create capacity and efficiency, attract and retain talent, and manage risk and regulation. With a network of offices worldwide, Pershing provides business-to-business solutions to clients representing approximately 7 million investor accounts globally. Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company. 

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