LAKE SUCCESS, N.Y.,
Jan. 28, 2016 /PRNewswire/
-- Total exchange-traded fund (ETF) assets hit an all-time
high of $2.2 trillion in 2015, driven
by the continued growth in popularity of passive investment
vehicles, according to quarterly data released today by Broadridge
Financial Solutions, Inc. (NYSE:BR) via its Fund Distribution
Intelligence. Comparatively, total long-term mutual fund assets
held by financial intermediaries decreased by $161 billion to $7.29
trillion in the full year of 2015, while ETF assets
increased by $124 billion in the same
period.
"The increased usage of passive investments across all
distribution channels accelerated in 2015. Our analysis shows that
passively managed index and ETF assets increased by two percent
during 2015, while actively managed funds and ETFs saw a one
percent decrease," said Frank
Polefrone, senior vice president of Broadridge's data and
analytics business. "We expect this trend to continue in 2016,
as the increased usage of ETFs and index funds continues for core
allocations."
According to Broadridge's Fund Distribution Intelligence
findings, retail distribution channels experienced a larger
increased usage of passive products, with an increase of 2.6
percent, versus institutional channels which increased by 1.6
percent. This increase brought the usage of passively managed
products to 31 percent across all channels, a two percentage point
market share increase during 2015.
With an increased use of both index funds and ETFs by advisors
and in model portfolios, passively managed fund and ETF assets
increased to 26 percent of overall fund and ETF assets held by
retail distributors over the past year. Among retail channels,
registered investment advisors and online retail shareholders
utilizing discount brokerage firms are the largest users of passive
products at 30 and 58 percent respectively. Alternatively,
independent broker dealers continue to be the highest users of
active funds, holding more than 80 percent in active
investments.
Additional key findings include:
- The wirehouse channel had the largest decrease of actively
managed products among retail channels during 2015, a decline of 4
percent.
- Alternatively, wirehouse firms had a 2 percent increase of
passively managed funds and ETFs during 2015.
- The only channels with an increase of long-term mutual fund
assets in 2015 were the bank and discount channels, which grew by
$52 and $29
billion respectively. These channels have the highest usage
of passively managed products.
Broadridge's Fund Distribution Intelligence comprises the most
complete sales and asset data collection in the industry, creating
transparency into more than $9
trillion of long-term mutual fund and ETF assets across a
majority of mutual fund distributors.
About Broadridge
Broadridge Financial Solutions, Inc. (NYSE:BR) is the leading
provider of investor communications and technology-driven solutions
for broker-dealers, banks, mutual funds and corporate issuers
globally. Broadridge's investor communications, securities
processing and managed services solutions help clients reduce their
capital investments in operations infrastructure, allowing them to
increase their focus on core business activities. With over
50 years of experience, Broadridge's infrastructure underpins proxy
voting services for over 90 percent of public companies and mutual
funds in North America, and
processes on average $5 trillion in
fixed income and equity trades per day. Broadridge employs
approximately 7,400 full-time associates in 14 countries.
For more information about Broadridge, please visit
www.broadridge.com.
Media
Contacts:
|
|
|
|
Linda
Namias
|
Danielle
Pieri
|
Broadridge Financial
Solutions
|
Brainerd
Communicators, Inc.
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+1
631-254-7711
|
+1
212-986-6667
|
linda.namias@broadridge.com
|
pieri@braincomm.com
|
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SOURCE Broadridge Financial Solutions, Inc.