LAKE SUCCESS, N.Y.,
Nov. 2, 2017 /PRNewswire/
-- Advisors drove significant growth of Exchange Traded Funds
(ETFs), almost $500 billon, over the
last twelve months ending September 30,
2017, with 80 percent of the net new assets coming from
retail channels, according to data released today by Broadridge
Financial Solutions, Inc. (NYSE: BR) via its Fund Distribution
Intelligence. During the third quarter, retail channels captured
the majority of net flows with $195
billion, or 77 percent of all ETF net flows.
In the past twelve months ending September 30, retail channels – RIAs, independent
B/Ds, wirehouse firms and online digital platforms – contributed
over $370 billion of net new ETF
assets, an increase of 21 percent. Among retail channels,
RIAs contributed the largest net flows with $132 billion, and continues as the largest holder
of ETFs with $874 billion.
"Advisors continue to embrace ETFs for client portfolio
allocations across both equity and fixed income products," said
Frank Polefrone, senior vice
president of Broadridge's data and analytics business. "The
dramatic growth of ETFs is driven by the changing distribution
landscape, including the increase in the number of fee based
advisors, as well as the use of model portfolios that primarily
utilize ETFs."
ETF Growth Driven by Advisors in 2017
Fund
Distribution Intelligence tracks over eight trillion of ETF and
fund assets across the four major retail channels, and
approximately 30 percent of those assets are now allocated to ETFs.
The majority of net new ETF assets in 2017 flowed to retail
distribution channels – RIAs, independent broker/dealers, wirehouse
firms, and the online channel.
- Over the past twelve months ending September 30th, net new ETF asset growth
increased by $469 billion, or 19
percent.
- During this period, 80 percent of ETF net flows, $370 billion, went into retail channels driven by
advisors.
Combined net new assets into funds and ETFs from retail channels
were up $854 billion versus
$353 billion for institutional
channels.
- The fastest growing channel in an absolute dollar basis for
combined fund and ETF assets during the last twelve months ending
September 30, 2017 was the RIA
channel, up $314 billion, or 14
percent.
- Net new flows of mutual funds for the online channel increased
by $183 billion, or 38 percent.
- Vanguard and Schwab drive the growth of the online channel,
offering a wide range of index and lower fee actively managed
funds.
"Even though actively managed funds still control most of the
industry's assets, they're falling farther and farther behind in
the race for new money and new clients," says Jeff Tjornehoj, Broadridge's director of
fiduciary and compliance research. "The divide is particularly
acute in U.S. equity products, which for most investors is the core
of their portfolio. Active bond funds—which have been much less
threatened by passive products—may start to feel the heat if
younger investors continue to follow a passive approach as they get
closer to retirement."
Broadridge's Fund Distribution Intelligence comprises the most
complete sales and asset data collection in the industry, creating
transparency into more than $12
trillion of long-term mutual fund and ETF assets across a
majority of mutual fund distributors.
About Broadridge
Broadridge Financial Solutions, Inc. (NYSE:BR), a $4 billion global fintech leader, provides
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
more than $5 trillion in fixed income
and equity trades per day. Broadridge employs approximately 10,000
full-time associates in 16 countries. For more information about
Broadridge, please visit www.broadridge.com.
Media
Contacts:
|
|
Linda
Namias
|
Joe
LoBello
|
Broadridge Financial
Solutions
|
LoBello
Communications
|
+1
631-254-7711
|
+1
516-902-2694
|
linda.namias@broadridge.com
|
joe@lobellocommunications.com
|
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SOURCE Broadridge Financial Solutions, Inc.