New research from Source reveals that over the past 12 months, nearly one in five (18 per cent) financial advisers say their clients have increased their exposure to ETFs as opposed to 3 per cent who have seen clients reduce it.
The firm says that over the next year, one in three (34 per cent) IFAs expect clients to increase their exposure to these investment products compared to 4 per cent of IFAs who anticipate exposure will fall.
Some 59 per cent of IFAs say that lower charges give ETFs an advantage over other investment funds, and this was followed by 21 per cent who said it was about innovation, and 13 per cent who cited the wide choice of ETFs available.
Figures from the London Stock Exchange reveal there are currently more than 1,200 ETFs and ETPs listed on its main exchange and that the total value of ETFs traded on-exchange this year is GBP175.7 billion, up 61 per cent, compared with the same period in 2014.
Source reports that it has raised USD3.4 billion of assets so far this year (as of 15 September 2015), equivalent to 20 per cent of the firm’s assets under management at the beginning of the year. Just over half of this (USD1.8 billion) has been into fixed income ETFs, with USD1.3 billion into equity ETFs and USD0.3 billion into commodity products.