Financial advisors continue to favor exchange-traded funds for client portfolios and plan to increase their ETF use, according to a study from the Financial Planning Association and the Journal of Financial Planning.
The survey, released this week, also found that clients are concerned that high interest rates and inflation will hamper their portfolios.
Over 89% of advisors responding to the 2024 Trends in Investing survey currently use or recommend ETFs, and over 60% plan to boost their ETF use in the next 12 months, reflecting a strong preference for this investment vehicle. Fewer than 2% indicated plans to reduce ETF use, the FPA said.
Among other findings, the survey found that a hybrid approach to active or passive management "continues to significantly outpace" advocates of one strategy or the other.
The survey, conducted from March 4 through April 3, gathered 208 responses from financial planners who provide investment services or implement recommendations for clients.
"ETFs continue to dominate investment portfolios, both current allocations and in the future. Indeed, investment managers appear to be shuffling concentrations without making major changes as the top five vehicles in current and future allocations are largely the same," the survey report said.
