A new report is a further call to action for fund managers who are lagging on providing exchange-traded funds as advisor and client demand grows.
With ETFs typically offering lower expense ratios than mutual funds, the majority of registered advisors are selling them (91%) according to a new report, closing in on the share who are selling mutual funds (94%) — and that’s set to escalate.
The Escalent Advisor Brandscape report conducted by Cogent Syndicated looks at how advisor marketplace revenue is impacted by brand and loyalty.
It reveals that 48% of ETF users plan to increase their use in client portfolios in the next year while 43% of mutual fund producers plan to cut their use of mutual funds over the next two years.
Economic conditions are a key concern of advisors and their clients, and Meredith Lloyd Rice, vice president in Escalent’s Cogent Syndicated division, said that with several U.S. bank collapses and fears of recession front of mind, ETFs look increasingly attractive.
“To make the dollar go further, advisors are increasingly turning to ETFs and decreasing allocations to mutual funds to reduce fees and potentially make higher earnings,” she said.
The full report features detailed assessments of leading ETF and mutual fund providers and highlights the importance of asset managers to articulate the value they provide to clients, especially given industry disruption and fee compression.
“While the value proposition and pathway to execution will vary by firm, using thought leadership, promoting partnership-related attributes and exceptional service, or providing value through merger and acquisition activity to achieve greater scale, all firms have a great opportunity to articulate their goals and pursue them based on their place in the market,” Rice added.
Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.
The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.
The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.
Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.
"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
