Report: 3 Of Every 4 Advisers Using/Recommending ETFs With Clients

The Financial Planning Association® (FPA®) today released a Trends in Investing Special Report that is featured in the June edition of The Journal of Financial Planning, focusing on trends in investing along with an accompanying whitepaper further detailing the research findings.

Key findings of the report and whitepaper detail current investment trends being utilized by financial professionals. The research found that exchange-traded fund (ETF) use continues to soar with three of every four advisers using/recommending ETFs with clients.

Another key finding of the research is that nearly half of advisers outsource some portion of their investment management. Nearly a third (31.4 percent) use separately managed accounts (SMAs), 23.3 percent use turnkey asset management programs (TAMPs), 6.9 percent use a different outsource method, and only 57 percent say they do not outsource investment management for any clients.

The research illustrates that the active-versus-passive debate continues with a quarter of advisers reporting they are using more actively managed funds than they were a year ago, and one in six advisers reporting an increased use of passive funds.

Additionally, advisers expect inflation to be on the rise. On average, they predict average annual inflation to hit 2.6 percent by February 2012, 3.45 percent by February 2013, and 4.24 percent by February 2016.

Harold Evensky, CFP®, AIF®, president of Evensky & Katz, consulted on the formation of the survey. He says that the research included in FPA’s Trends in Investing Special Report is helpful to financial planners looking toward the future.

“We live in an uncertain financial world; however, as practitioners we need to make assumptions regarding the future,” Evensky said. “Research such as the FPA Trends in Investing Special Report is critical in alerting financial professionals to industry changes and helping us develop forward-looking economic expectations.”

Note: Please find a copy of the whitepaper by visiting: http://www.fpanet.org/professionals/member/downloads/2011TrendsinInvestingWhitepaper.pdf. Please visit http://www.FPAnet.org/journal/ to view the special report in The Journal of Financial Planning.

About FPA Research Center

FPA has conducted research since its inception in 2000. The FPA Research Center was officially formed in 2007 to further empower the financial services sector with knowledge and an understanding of the financial planning process, including how it affects consumers, planners and firms.

About the Financial Planning Association

The Financial Planning Association® (FPA®) is the largest membership organization for personal financial planning experts in the U.S. and includes professionals from all backgrounds and business models. FPA members adhere to the highest standards of professional competence, ethical conduct and clear, complete disclosure to those they serve. Based in Denver, Colo., FPA works in alliance with academic leaders, legislative and regulatory bodies, financial services firms and consumer interest organizations. For more information about FPA, visit www.FPAnet.org or call 800.322.4237.

SOURCE Financial Planning Association

Leave a Reply

Your email address will not be published. Required fields are marked *