MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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|
MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Wednesday, April 27, 2011 ETFs Dominate When Advisors Call the Shots Fundsters interested in distribution of ETFs through broker-dealers may want to take a look at the latest revelation from Strategic Insight. Yesterday the New York-based research firm released a new report, "How Financial Advisors Use ETFs," showing that ETF use by advisors with national broker-dealers is highest amongst advisors using discretionary wrap programs (i.e. fee-based advisory programs where the advisor makes decisions on behalf of clients). InvestmentNews' Jessica Toonkel also reported on the findings. According to Strategic Insight, at national broker-dealers ETFs accounted for a whopping 54 percent of retail fund assets in discretionary wrap programs (which Strategic Insight refers to as "Rep-as-PM" programs) but only 25 percent of overall (discretionary and non-discretionary) wrap programs. Senior research analyst Loren Fox, author of the report, explained that "advisors working in Rep-as-PM programs don't need to persuade clients to use ETFs." The report also examined what types of ETFs national B-D reps are using in wrap programs and where the new ETF assets are coming from. Printed from: MFWire.com/story.asp?s=36646 Copyright 2011, InvestmentWires, Inc. All Rights Reserved |