NEW YORK (September 26, 2024) – ISS Market Intelligence (MI), a leading provider of data, analytics, insights, media, and events solutions to the global financial services industry, today announced the latest results of its ISS MI Advisor Pulse Series – Vehicle Preferences, Portfolio Construction and Direct Indexing study, comprised of results from over 800 interviews with U.S-based financial advisors in July 2024.
The report highlights a continuing shift in advisor preferences, as ETFs are increasingly becoming the preferred vehicle of choice over open-end mutual funds. When presented with the same investment strategy from a top asset manager across multiple vehicles, 60 percent of advisors expressed a preference for ETFs, while only 15 percent cited mutual funds. Passive ETFs account for the largest portion of net new ETF assets, but advisors have displayed increasing interest in actively-managed strategies. Active ETFs recorded the highest number of advisors planning to increase usage over the next 12 months at 53 percent. Cost considerations stood out as the top factor driving this shift into both active and passive funds, with 41 percent of advisors emphasizing fees and 33 percent highlighting tax efficiency as their primary reasons for choosing ETFs. “In our view advisor bullishness on active and passive ETFs is more a function of vehicle appropriateness and a reflection of advisors’ desire for cost containment and tax efficiency rather than a sign of philosophical commitment to active or passive investing.” said Ashley Wood, Managing Director, ISS Market Intelligence.
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About ISS Market Intelligence
ISS Market Intelligence (MI) is a leading provider of data, insights, and market engagement solutions to the global financial services industry. ISS MI empowers asset and wealth management firms, insurance companies, distributors, service providers, and technology firms to assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business. Clients benefit from our increasingly connected global platform that leverages a combination of proprietary data, powerful analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry-leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards.
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
Media Contact:
Terra Chang
Senior Associate, Marketing
press@issmarketintelligence.com
ISS MI Research Reveals Advisors’ Increasing Preference for Active ETFs and Direct Indexing Solutions
NEW YORK (September 26, 2024) – ISS Market Intelligence (MI), a leading provider of data, analytics, insights, media, and events solutions to the global financial services industry, today announced the latest results of its ISS MI Advisor Pulse Series – Vehicle Preferences, Portfolio Construction and Direct Indexing study, comprised of results from over 800 interviews with U.S-based financial advisors in July 2024.
The report highlights a continuing shift in advisor preferences, as ETFs are increasingly becoming the preferred vehicle of choice over open-end mutual funds. When presented with the same investment strategy from a top asset manager across multiple vehicles, 60 percent of advisors expressed a preference for ETFs, while only 15 percent cited mutual funds. Passive ETFs account for the largest portion of net new ETF assets, but advisors have displayed increasing interest in actively-managed strategies. Active ETFs recorded the highest number of advisors planning to increase usage over the next 12 months at 53 percent. Cost considerations stood out as the top factor driving this shift into both active and passive funds, with 41 percent of advisors emphasizing fees and 33 percent highlighting tax efficiency as their primary reasons for choosing ETFs. “In our view advisor bullishness on active and passive ETFs is more a function of vehicle appropriateness and a reflection of advisors’ desire for cost containment and tax efficiency rather than a sign of philosophical commitment to active or passive investing.” said Ashley Wood, Managing Director, ISS Market Intelligence.
Read More
###
About ISS Market Intelligence
ISS Market Intelligence (MI) is a leading provider of data, insights, and market engagement solutions to the global financial services industry. ISS MI empowers asset and wealth management firms, insurance companies, distributors, service providers, and technology firms to assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business. Clients benefit from our increasingly connected global platform that leverages a combination of proprietary data, powerful analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry-leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards.
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
Media Contact:
Terra Chang
Senior Associate, Marketing
press@issmarketintelligence.com
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