ETFs now used by 88% of advisers, FPA survey finds

ETFs now used by 88% of advisers, FPA survey finds
Clients interested in marijuana/cannabis stocks, cryptocurrencies and ESG/socially responsible investing
JUN 04, 2019

For the fifth year in a row, exchange-traded funds remain the most popular of 22 investment options in a survey of financial advisers by the Financial Planning Association. Currently, 88% of advisers surveyed currently use or recommend ETFs. FPA's survey, conducted with the Journal of Financial Planning and the FPA Research and Practice Institute, found that the use and recommendation of individual securities has dropped significantly from 2006, when 60% of advisers used or recommended individual bonds in client portfolios, compared with 42% currently. Over the same time period, ETF usage has increased from 40%. (More:​ 'ETFs as asset class' among the top 2019 market trends) The results also indicated that 45% of advisers plan to increase their use or recommendation of ETFs with clients over the next 12 months — on par with the 46% in 2018. No other investment vehicle showed this level of anticipated increased usage, the FPA said in a release. The research, "2019 Trends in Investing Survey," also revealed clients' interest in newer investments. More than half of the advisers surveyed (55%) said they are fielding questions from clients about investing in marijuana/cannabis stocks or companies. A quarter of advisers are addressing questions about cryptocurrencies (down from 53% in 2018), and 35% continue to respond to client questions about ESG/socially responsible investing. The 2019 survey was fielded online in April and received 392 responses from financial advisers of various backgrounds and business models.

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