ETFs have been available for nearly twenty years, yet their popularity is not widespread.  Just 34% of investors surveyed have heard of ETFs, 25% have a basic understanding of the product, and 15% have ETFs in their portfolios.

However, when asked what they are looking for in investment products, the answers matched up with many of the characteristics of ETFs, according to a press release from TD Ameritrade. For the nearly 40% of investors who said they are undecided about investing in ETFs, “the ability to reduce risk through diversification,” was the most commonly given answer when asked what their main requirement is for investment options.  “Lower expenses and fees” and “Ability to trade commission-free” were also the most common requirements among respondents.

“ETFs may fulfill many of the stated needs that investors have told us are important to them,” said Mike McGrath, director of ETFs, TD Ameritrade. “It’s a matter of awareness, education, and simplifying the selection process.”

This online survey received results from 852 investors. TD Ameritrade recently unveiled an “ETF Market Center,” which includes a list of over 100 commission-free ETFs that have been evaluated and selected by Morningstar Associates, LLC, a registered investment adviser and unit of Morningstar.