September 11, 2012
--- Though advisers are more likely to choose mutual funds over
exchange-traded funds (ETFs) to access alternatives, ETFs are catching up. ---
Among advisers who currently access alternatives, 29% expect
to increase ETF use, Cogent Research’s Alternative Investment Trends 2012
report found. The majority of investors (78%) still prefer mutual funds over
ETFs (58%), but just 17% plan to increase their use of mutual funds.
Investors who are not currently utilizing ETFs to meet
alternative investment needs are almost twice as likely as mutual fund
non-users to begin doing so over the next two years (17% vs. 9%).
“Advisers continue to flock to ETFs that access alternative
investments for the same reasons they seek this vehicle in traditional asset
classes—cost efficiency, liquidity and transparency,”
said Steven Sixt, senior project director and study co-author.
The 2012 Alternative Investment Trends report surveyed 1,741
U.S. retail investment advisers via the Web in March 2012.
For more information, visit www.cogentresearch.com.