Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
ThinkAdvisor

Portfolio > ETFs

Self-directed investors driving ETF growth

X
Your article was successfully shared with the contacts you provided.

Self-directed investors have a greater interest in ETFs than advised investors, according to new findings from Cogent Research released this week.

According to Cogent, self-directed investors’ awareness of several top ETF providers is almost twice that of advised investors. What’s more, while equal proportions of self-directed and advised investors use ETFs, self-directed investors allocate 20 percent more of their portfolio to ETFs.

“Everything we see in the data suggests that there is real ‘home-grown’ passion among investors-both advised and self-directed-for ETFs,” said Christy White, founder and principal of Cogent Research, in a statement. “At the end of the day,” she adds, “providers that are committed to promoting and supporting a dual distribution strategy will prevail in this growing marketplace.”

Additional findings:

  • Among current ETF owners, self-directed investors are far more loyal to their primary ETF provider than are investors who purchase and own their investments through an advisor.
  • Usage of ETFs is expected to increase significantly in 2009 among current owners and non-owners alike. On average, one out of every four (25 percent) current ETF owners plans to increase their ETF holdings. Among self-directed investors, the proportion of likely increased use rises to 35 percent, representing a 40 percent higher increased adoption rate.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.