Compared to their peers who represent mutual fund or variable annuity (VA) products, ETF wholesalers receive significantly lower ratings from advisors for two critical satisfaction measures: demonstrating an understanding of an advisor’s business and recommending products that are well suited to an individual’s practice.
These and other findings are included in the annual Wholesaler Quality Index, a Cogent Reports study from Market Strategies International. The report is based on a survey among a nationally representative sample of more than 1,700 financial advisors in the U.S.
Only half (49 percent) of all advisors who have interacted with an external ETF wholesaler in the prior three months report being satisfied with the wholesaler’s understanding of their book of business. A slightly higher proportion (58 percent) is satisfied with wholesalers’ ability to provide product ideas that reflect their book of business. Internal wholesalers fared worse: only 43 percent of advisors reporting they are satisfied on either measure.
In comparison, 59 percent of advisors rate mutual fund external wholesalers’ understanding of an advisor’s book of business as “excellent” or “good.” The advisor satisfaction rate with external wholesalers’ ability to recommend suitable product is 62 percent.