More than one quarter of institutional investors use exchange-traded funds for long-term strategic purposes, according to a new report.
Cerulli Associates discloses this finding in a December 2013 issue of “The Cerulli Edge: U.S. Monthly Product Trends.” The report examines product development trends in 2013 and explores opportunities in liquid alternatives.
The survey reveals that 28 percent of institutional investors have adopted ETFs for long-term strategic purposes. The same percentage of institutional investors either:
- Use ETFs for short-term tactical opportunities; or
- Do not recommend that clients use ETFs.
By far the largest percentage of these investors (72 percent) use ETFs for liquidity purposes.