ETF investors see gyrating markets over next six months

ETF investors see gyrating markets over next six months
Schwab study finds ETF investors view vehicle as way to manage volatility.
MAY 10, 2019

A majority (61%) of ETF investors expect market volatility to increase over the next six months, and close to half (44%) say they will put more money into exchange-traded funds as a result, according to a survey of 1,500 investors who bought or sold an ETF within the past two years. (More:'Death by Amazon' gauge exposes gulf between retail ETFs) The survey, conducted by Charles Schwab & Co., is the firm's ninth annual look at investor attitudes and usage of exchange-traded funds. It found that domestic equity ETFs were the top choice (63%) among respondents when they were asked about the asset classes in which they plan to invest over the next year. Among sector ETFs, more than two-thirds (69%) of all survey respondents and 84% of Millennials said that technology is their top choice. Nearly three-quarters (74%) of those surveyed say now is a good time to invest in fixed income ETFs, with millennials even more convinced (86%). (More:Forget zero fees. This ETF is offering to pay investors) "After a decade of market gains, ETF investors now see clouds on the horizon and are planning to use ETFs to help them weather the storm," said Kari Droller, vice president of third-party mutual fund and ETF platforms at Schwab.

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