Vanguard ETFs rate high

Affluent investors increasingly are turning to exchange-traded funds over mutual funds, and when it comes to their sentiments about the providers of those ETFs, clients rate The Vanguard Group Inc. above all others
JAN 30, 2011
Affluent investors increasingly are turning to exchange-traded funds over mutual funds, and when it comes to their sentiments about the providers of those ETFs, clients rate The Vanguard Group Inc. above all others. As of October, three-quarters of investors owned mutual funds, down 19% from 2006, according to a new study by Cogent Research LLC. Conversely, the percentage of investors who own ETFs has jumped from 7% to 11% over the past four years. The average allocation that an investor made to mutual funds dropped to 44%, Cogent found, down from 53% four years ago. During the same period, the average allocation to ETFs jumped to 16%, from 11%. The fund company positioned to benefit the most from this trend is Vanguard, which had the highest “investor favorability” score among mutual fund providers and ETF providers. “These findings from investors tend to reflect what we know about net asset flows in the business,” said John Meunier, a principal at Cogent. “Vanguard is picking up net flows in both these product areas.” Last year, Vanguard saw $81.1 billion in total net inflows, $35.4 billion of which went into its ETFs, according to the firm. BlackRock Inc.'s iShares came in second in terms of investor favorability among ETF providers, and Invesco PowerShares Capital Management LLC was third, up from sixth place last year. In September, Cogent released a study showing that advisers rated Vanguard as their favorite ETF provider. The company's latest study is based on responses from a sample of 4,000 investors with at least $100,000 in investible assets.

Latest News

Osaic in talks with Anthropic as AI reshapes advisor workforce
Osaic in talks with Anthropic as AI reshapes advisor workforce

The Independent broker-dealer giant has had “active conversations” with the Claude maker, which is days away from its expected IPO

The retirement milestone advisors aren't tracking
The retirement milestone advisors aren't tracking

For Gen X clients entering life after work, answering the financial question isn't enough to solve the entire retirement equation.

Wealthtech firms target stock pay, pensions and heirs for advisors
Wealthtech firms target stock pay, pensions and heirs for advisors

Tools from Grantd, Income Lab and Healthspan Wealth aim to keep RIAs involved in clients’ biggest money decisions

CFP Board, coalition press Senate on fraud victim tax relief
CFP Board, coalition press Senate on fraud victim tax relief

With elder scam losses near $3 billion, 52 groups urge senators to pass H.R. 9500 before a new Congress resets the clock

Trump nominates Johnson, Levine to fill SEC’s empty commission seats
Trump nominates Johnson, Levine to fill SEC’s empty commission seats

White House also sends two CFTC commissioner picks to the Senate, marking the first Democrats tapped for either Wall Street regulator under Trump's second term

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.