According to the 2015 Trends in Investing Survey by the Journal of Financial Planning and the FPA Research and Practice Institute™, as an investment vehicle that advisers use and recommend, Exchange-Traded Funds (ETFs) now surpass mutual funds in popularity. This marks the first time since the survey was first completed in 2006 that ETFs have assumed the role of preferred investment vehicle among advisers, with 81 percent of financial advisers surveyed currently using or recommending ETFs with their clients—the most popular investment vehicle among 17 options.
Seventy-eight percent of advisers surveyed currently use or recommend mutual funds (non-wrap) with clients. The survey has shown continued growth in the popularity of ETFs since 2006, when just 40 percent of survey participants indicated they used or recommended ETFs. This percentage grew to 44 percent in 2008, to 79 percent in 2014, and to 81 percent in 2015.
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LISTEN NOW - MoneyLife Radio Show
FPA Practice Management Director Valerie Chaillé, CFP®, joined Chuck Jaffe on the MoneyLife radio show on May 27 to discuss the recently released 2015 Trends in Investing Survey. Listen to the show and hear what Valerie has to say about ETFs supplanting mutual funds as the most used/recommended investment vehicle by financial advisers. Listen now!
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