Survey finds overwhelming preference for ETFs amongst US financial advisors

Jun 6th, 2017 | By | Category: ETF and Index News

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ETFs have been found to be the most popular investment vehicle amongst US financial advisors, according to a survey by the Financial Planning Association, with 88% of respondents currently using or recommending ETFs with their clients.

Survey finds overwhelming preference for ETFs amongst US financial advisors

Half of advisers plan to increase their use or recommendation of ETFs with clients over the next 12 months.

The 2017 Trends in Investing Survey, conducted in partnership with Longboard Asset Management and the Journal of Financial Planning, marks the third consecutive year that ETFs claimed the top ranking among 18 options.

The survey has shown continued growth in the popularity of ETFs since 2006, when just 40% of survey participants indicated they used or recommended ETFs. This percentage had grown to 79% in 2014, 81% in 2015, 83% in 2016, and now 88% in 2017.

ETFS Financial Planners Survey 1

Source: Financial Planning Association.

The 2017 survey was fielded online in March and April 2017 and received 302 responses by financial advisers of various backgrounds and business models. It also indicated that 50% of advisers plan to increase their use or recommendation of ETFs with clients over the next 12 months. No other investment vehicle showed this level of anticipated increased usage – 20% plan to increase use of mutual funds (non-wrap) and only 19% plan to increase use of individual stocks.

Source: Financial Planning Association.

Source: Financial Planning Association.

When asked which investment vehicles they were likely to decrease their usage or recommendation of over the next twelve months, 5% of respondents cited ETFs, although this was significantly below mutual funds (20%), individual stocks (16%) and individual bonds (13%).

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