Top 10 ETF 'Power Users' Among RIAs

Exchange-traded funds have become a mainstay in many investor portfolios, so it should come as little surprise that it's the same for wealth managers. Many firms have made ETFs a key tool in client portfolios as investors have shifted more assets into these tax-efficient vehicles and away from traditional mutual funds. RIA Database recently released its ranking of 100 top ETF power users, based on firms' total ETF assets. The data provider said the ranking features wealth management firms based on their aggregate total ETF assets. "Since our beginning, we have believed in a passive approach to the equities part of our portfolios. That led us to be an early leader in the ETF space," Peter Mallouk, president and CEO of top-ranked Creative Planning, told ThinkAdvisor. "While today we use individual securities to track indexes in many instances, ETFs are still a very big part of our approach," he said. Carson Group also landed high in RIA Channel's ranking. "We believe ETFs are better vehicles for money management than traditional mutual funds in a variety of ways. Tax efficiency, lower total costs, transparency and accessibility are just a few of client-friendly reasons ETFs are our preferred investment vehicle," Carson Group's new vice president, investment strategist Grant Engelbart told ThinkAdvisor via email. "Operational flexibility through the single share class availability and no revenue sharing are additional benefits that help us manage money more efficiently but ultimately accrue to the client," he said. "On top of that, large traditional active managers are entering the ETF space in a big way, changing the passive market cap use case of ETFs and shifting towards actively managed funds." Engelbart said he plans to expand and curate Carson's ETF lineup, which advisors can use to build and scale custom models. Check the gallery for the top 10 ETF power users, ranked by RIA Database. Slide images: Chris Nicholls/ALM