Retail channels see ETF growth 02 November 2015New York Reporter: Drew Nicol
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There was a 7.4 percent growth in exchange-traded funds (ETFs) assets from January to 30 September, according to the Broadridge Financial Solutions Fund Distribution Intelligence.
ETF assets increased by $144 billion due to retail channels, according to Broadridge鈥檚 data.
Long-term mutual fund assets from third party distributors dropped by 2 percent ($156 billion), during the same period.
Retail channels now represent 63 percent of all ETF assets.
Registered investment advisors (RIAs) led all retail channels over the past year adding $46 billion in ETF assets, followed by wirehouses with $45 billion and independent broker dealers (IBDs) with $41 billion.
The only retail channel with increased assets for long-term mutual funds over this period was the RIA channel with an increase of $29 billion.
鈥淓TF assets continued year-on-year growth through the third-quarter, despite the worst stock market drop since 2008, with advisors accounting for the lion鈥檚 share of investment,鈥� said Frank Polefrone, senior vice president of Broadridge鈥檚 Access Data product suite.
鈥淭his trend demonstrates the increased use of passive products. Registered investment advisors, which hold a higher percentage of passively managed funds, were the only retail channel with an increase of long-term fund assets over the last year.鈥�
The latest Broadridge data also highlighted that total long-term mutual fund and ETF assets across retail and institutional channels reached $7.2 trillion and $2.09 trillion, respectively.
On a year-to-date basis, total ETF assets increased by 0.2 percent ($5 billion), while long-term funds sold through distributors decreased by 3.3 percent ($243 billion).
While retail ETF channels were up 13 percent ($150 billion) over the past year, ETF assets from institutional channels decreased by 1 percent ($6 billion).
Long-term funds from retail channels were down by $199 billion over the past year, while assets from the institutional channels were up $43 billion.
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