vanguard 50pc of advisers plan to increase etf

In a survey taken at its June Investment Symposium, Vanguard Asset Management found that half of advisers polled plan to increase their ETF exposure.

vanguard 50pc of advisers plan to increase etf


In the survey taken at its June Investment Symposium, 50% of the 220 advisers polled said they would increase their usage of Exchange Traded Funds (ETFs).
Advisers also said that they believed lower costs and better availability of on UK platforms are the most likely reason to increase passive investing through ETFs. 
In an even split, 32% of advisers polled believed that that lower costs were driving ETF usage, while 32% believed better availability was key. 
A further 26% said more education was needed to help inform ETF asset allocation decisions. 
“We are seeing increased appetite for ETFs as many more advisers are recommending them for clients’ portfolios,” Nick Blake, head of retail for Europe, said.
He added that it came as “no surprise” that more education and better availability on UK platforms is needed to encourage greater usage. 

Growing market

“It does not come as a surprise that a lot of advisers will need to up their game,” Peter Sleep, senior portfolio manager at Seven Investment Management, said.
“There has been a lot of press and ink spilled in the last years to make advisers aware of the complexity of ETFs.”
In a recent report, BlackRock announced it was closing in on $1trn in iShares. The firm expects the global ETF industry to grow to $3.6trn by 2017, up from $2.5trn currently.  



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