Does an increased appetite among investors for passive investing products represents an opportunity or a threat to RIAs?
According to the results of the latest Schwab Independent Advisor Outlook Study, released during the Schwab Impact conference, more advisors are actively thinking about passive investing as an opportunity.
The Independent Advisor Outlook Study is an online study conducted from Sept. 6 to 17 among 946 advisors employed by independent investment advisor firms, whose assets are custodied at Schwab.
According to the study, 66% of those surveyed said they view the increased appetite among investors for passive investing as an opportunity, versus 34% who view it as a threat.
“Passive investing is a great way to free up time – to spend on planning, to spend on life choices, to spend on coaching and other areas,” Bernie Clark, head of Schwab Advisor Services, said during a press briefing to discuss the study results at Schwab Impact.
The study asked those advisors that have an opportunistic view of passive investing why they think passive investing strategies could be an opportunity for RIAs.