Advisors’ ETF Use Jumps, Annuity Use Slumps: FPA

Survey results also indicate an overall increased use of cash and equivalents since 2006, when just 53% of planners surveyed were using or recommending cash, compared with 79% today.

"The study seems to point to a shift toward investments with greater transparency and liquidity," says Valerie Porter, director of the FPA Research and Practice Institute. "Perhaps advisors are responding to consumers' demand for lower cost investments that allow them to be more nimble in their investment approach. And I think it's safe to say everyone values cash a little more since last decade's market collapse."

Other key survey findings include:

• While 50% of advisors indicate that they do not plan to decrease the use or recommendation of any investment vehicles in the next year, 15% will decrease use of individual bonds, and 16% will decrease use of non-wrap mutual funds.
• Although the majority of advisors (57%) believe a blend of active and passive management provides the best overall investment performance (taking into account costs associated with each style), more advisors are likely to have increased their use of passively managed funds over the last year (30%), then actively managed funds (18%).

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