February 2014, BOSTON. New research from global analytics firm Cerulli Associates finds exchange-traded fund (ETF) use among registered investment advisors (RIAs) has grown nearly 27% annually over the past 5 years, and Cerulli anticipates this growth to continue.
"The allocation to ETFs among RIAs grew 48% from 2011 to 2012," comments Kenton Shirk, associate director at Cerulli. "The RIA channel is an extremely attractive opportunity for asset managers."
Cerulli's latest report, RIA Marketplace 2013: The Changing Landscape of a Maturing Industry is focused on understanding the unique dynamics of the RIA channel. This report provides insights about RIAs for providers and asset managers serving these advisors.
"RIAs believe ETFs will become a larger portion of portfolios," Shirk continues. "ETFs gained popularity as a cost-effective method to achieve diversification, but with increased adoption they have evolved to cover a wide variety of investment strategies."
Cerulli encourages asset managers to provide wholesalers with the resources to properly target the RIA channel. Strong advisor movement into the channel combined with heavy use results in a highly profitable segment of the market.