Sponsors of exchange-traded funds (ETFs) report that ETF liquidity is the subject advisors understand the least, new research reveals.
Cerulli Associates released this finding in a July 2013 report, “Cerulli Edge: U.S. Asset Management Edition.” The report explores retail educational strategies, including whitepapers, ETF education, organizational structure and staffing.
On a scale of 1 to 6, where one represents the least knowledgeable and 6 the most knowledgeable, ETF liquidity ranks 1.4 in the survey, below that of five other ETF-related topics. The survey scores knowledge of the other topics as follows:
4.6—How to employ ETFs in portfolio construction
4.0—The tax treatment of ETFs