Riding a strong institutional momentum, exchange-traded funds are quickly gaining popularity in the retail market, The Wall Street Journal
's Fund Track
noted Thursday, citing findings from a Cogent Research study
made public Tuesday.
In a survey of 4,000 "well-to-do" individual investors, 11 percent said they now own an ETF, compared to 9 percent a year earlier. Additionally, in general, investors who bought ETFs were slightly younger and wealthier than the overall pool.
This will surely come as good news to Fidelity
and Charles Schwab
, who separately made partnerships to offer their investors ETFs without online trading fees.
It appears that investors have an affinity for low-cost funds, such as those offered by Vanguard Group
, and leveraged ETFs, which individuals might be using as short-term bets.
For example, in the fall of 2009, leveraged ETFs made up two-thirds of all ETF trades at TD Ameritrade
, although that number dipped in December when FINRA made the funds more difficult to trade. ETF trading accounts for about 12 percent of all fund trading at TD.
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