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April 01, 2009 at 04:00 AM
A study published from Strategic Insight (SI) shows the assets in ETFs reaching $1 trillion by 2011. The report highlighted a major shift in the investment advisory business prompted by asset allocation models and fee-based investment advice.
Even though 2008 had the worst stock market performance since 1931, U.S.-listed ETFs still managed to rake in assets. ETFs took in a net $176 billion, which was 29 percent higher compared to 2007. Because of last year’s sharp market declines, the total value of ETF assets fell by $78 billion to $536 billion.
The SI report surveyed 85 registered investment advisors and found that 24 percent plan to significantly increase their usage of ETFs. Another 49 percent of advisors said they planned to increase their usage of ETFs, but not by significantly more. Just 5 percent of advisors reported they would reduce their usage of ETFs.
In other research, Rydex Investments published the results of its Advisor Benchmarketing Supplemental Survey. The survey found that open-ended mutual funds and ETFs will be a primary vehicle or product focus for 2009 for investments.
