Q. Where do financial advisors allocate their clients' money?
A. The chart below tells the answer how financial advisors allocate their clients' money among different asset groups.
Also, the latest 2018 Trends in Investing Survey from the Financial Planning Association shows that while a whopping 87% of financial advisors use ETFs, 73% of financial advisors are using mutual funds as well.
From the broader historical data, the biggest shift for financial advisors hasn’t actually been from mutual funds to ETFs at all over the past decade, but from variable annuities into ETFs (and to a lesser extent, from individual stocks and bonds to ETFs as well), along with a rise of investing in private equity funds. In fact, mutual funds showed remarkably little decline in adoption rate over the past decade, at all, until just the past year!
A. The chart below tells the answer how financial advisors allocate their clients' money among different asset groups.
Also, the latest 2018 Trends in Investing Survey from the Financial Planning Association shows that while a whopping 87% of financial advisors use ETFs, 73% of financial advisors are using mutual funds as well.
From the broader historical data, the biggest shift for financial advisors hasn’t actually been from mutual funds to ETFs at all over the past decade, but from variable annuities into ETFs (and to a lesser extent, from individual stocks and bonds to ETFs as well), along with a rise of investing in private equity funds. In fact, mutual funds showed remarkably little decline in adoption rate over the past decade, at all, until just the past year!
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