PA ANALYSIS: How are today's wealth managers using ETFs?

Added 19th June 2017

Assets in exchange traded funds sailed past the $4trn mark globally last month, indicating their increasing popularity among investors worldwide.

PA ANALYSIS: How are today's wealth managers using ETFs?

Wealth managers have traditionally allocated meagre chunks of their portfolios to passive, but that could be set to change.

Recent data from research provider Wealth-X, which quizzed 36 UK wealth managers, found on average just 9% of assets in portfolios contained index-tracking products.

More than a quarter of those surveyed had 0% of clients’ portfolios in passive.

But with a continued regulatory focus on fees, greater transparency and calling out of so-called benchmark-huggers, as well as the ongoing struggle to find returns amid the uncertain political environment, wealth managers are beginning to explore the ETF landscape.

According to Blackrock, there were strong ETF inflows throughout May on the back of the continuing equity bull run.

The US still rules the roost, with US ETFs making up more than half of total assets under management.

Elsewhere, statistics from Lipper revealed that, during the week ending 14 June, investors piled $17.7bn into US-based ETFs.

However, there has been an increased appetite for ETFs across the board, notably in Europe following the result of the French presidential election and the subsequent easing of the threat of populism.

Asset classes eating into the US’s market share include European equities with $23.9bn inflows in May, while investment grade corporate bonds and emerging market equities enjoyed windfalls of $22.9bn and $19.9bn respectively, Blackrock said.

Kames Income Hub

home_research_centre

Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Premier Multi Asset Global Growth - Alex Farlow
Premier Multi Asset Global...

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Sebastian joined Last Word Media in 2017 as editor of Portfolio Adviser. He previously spent 10 years as a journalist and editor in the UK institutional investment sector, most recently as editor of Portfolio Institutional. Prior to that, he held several roles at Professional Pensions which is part of Incisive Media.

Profiles

Viewpoint

Investment Strategy

Feature

Tweets

Events

PA Edinburgh 2017
PA Edinburgh 2017

Thursday 7 September
Balmoral Hotel, Edinburgh

PA Alternatives 2017
PA Alternatives 2017

Tuesday 12 September
Sofitel St James, London  

PA Dublin October 2017
PA Dublin October 2017

Tuesday 10 October
Westbury Hotel, Dublin

PA US 2017
PA US 2017

Tuesday 17 October
Furniture Makers' Hall

OTHER STORIES FROM LAST WORD...