As billions of dollars continues to flow into exchange-traded products, financial advisors are taking the lead in ETF adoption.
In the 2017 Trends in Investing Survey, published by the Financial Planning Association, Longboard Asset Management and the Journal of Financial Planning, almost every advisor respondent reported using or recommending ETFs to their clients.
Among the FPA’s respondents, 88 percent of advisors are either using or recommending ETFs, making them industry’s the most popular investment vehicle among 18 possible choices. This percentage more than doubles the number of ETF adoptees than registered in the survey’s first year, 2006, when 40 percent of advisors were using or recommending the products.
According to the survey, 50 percent of advisors plan to increase their recommendations of ETFs over the next 12 months.