Exchange-traded fund use among registered investment advisors (RIAs) has grown by nearly 27 per cent annually over the past five years, according to research by Cerulli Associates.
The analytics firm is anticipating that this growth will continue.
“The allocation to ETFs among RIAs grew 48 per cent from 2011 to 2012,” says Kenton Shirk, associate director at Cerulli. “The RIA channel is an extremely attractive opportunity for asset managers.”
Cerulli’s latest report, RIA Marketplace 2013: The Changing Landscape of a Maturing Industry, is focused on understanding the unique dynamics of the RIA channel. The report provides insights about RIAs for providers and asset managers serving these advisors.
“RIAs believe ETFs will become a larger portion of portfolios,” Shirk says. “ETFs gained popularity as a cost-effective method to achieve diversification, but with increased adoption they have evolved to cover a wide variety of investment strategies.”
