ETF adoption among financial advisers reaches all-time highs
BetaShares releases findings from its annual ETF research report, including new data on how advisers are using ETFs, and trends in ESG investing.
SYDNEY, 28 June 2021: Research released by leading Australian ETF Manager BetaShares, in collaboration with research firm Investment Trends, shows that the number of advisers indicating they have used ETFs has more than doubled over the last decade. The latest survey shows that over 75% of Australian advisers are now using ETFs in client portfolios or intending to start adopting ETFs during the course of 2021.
Specifically, 59% of advisers already use ETFs in constructing client portfolios (up from 27% in 2010). The research pointed to further growth to come, with another 17% of advisers intending to adopt ETFs for the first time by the end of 2021.
The report highlighted the increasingly important role that ETFs are playing in adviser practices. Planners who recommend ETFs are allocating on average 20% of net inflows to ETFs, up from 17% in 2019, and just 7% in 2013.
Along with the continued growth in ETF usage, advisers are additionally citing a wider range of reasons for using ETFs compared to previous research. While cost and diversification remain key drivers of adoption, 69% of advisers use ETFs to access specific markets or asset classes.
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