Data & Research August 31, 2010

Advisers Have Growing Preference for Vanguard ETFs

A Cogent Research report shows advisers gravitating more towards Vanguard exchange-traded funds (ETFs) and away from the industry leader, iShares.  
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Vanguard outranked iShares in adviser loyalty according to the Cogent “2010 Advisor Brandscape™” report which used “Net Promoter Score (NPS),” a standardized loyalty metric developed by Bain & Company, to gauge the results.  

According to the report, Vanguard received a Net Promoter Score of 33, whereas iShares tied for the #2 position with Spiders/State Street with a score of 20. Coming in fourth was PIMCO, a rookie ETF provider in 2010, with a score of 12.   

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The advisers were asked to weigh various metrics, such as overall market penetration, level of commitment and share of wallet. The amount of business Vanguard has been receiving among advisers has more than doubled, from $2.3 million per user in 2009 to $5.5 million per user in 2010. This $5.5 million figure now rivals iShares’ per adviser AUM average of $5.7 million. 

“In terms of penetration, they have a long way to go to catch iShares, but right now the momentum is clearly with Vanguard” said Cogent Principal John Meunier. 

 

Products August 31, 2010

Huntington Shifts Strategy of Rotating Markets Fund

Huntington Funds announced that the Huntington Rotating Markets Fund's (HRITX) investment strategy has shifted from the global market segment to large cap, focusing specifically on the U.S. Dow Jones Industrials.
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The Rotating Markets Fund rotates investments among four major market segments:  large cap, mid cap, small cap and global.  The fund manager identifies the most promising market sectors, keeping the fund invested in areas that offer the greatest return on investment.  

A press release said fund Manager Paul Koscik selected the Dow Jones Industrials because they are typically a more conservative equity investment option. The Industrials are comprised of 30 well known, “blue chip” stocks.   

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“As market instability has increased, investors have been moving away from riskier investments, such as mid- and small-cap stocks, and leaning more toward conservative and less volatile large-cap ‘Blue Chip’ stocks like those found in the Dow Jones Industrials,” Koscik said in the announcement.    

The Rotating Markets Fund has been focused on the global market segment since April 2009.  This is the fund’s sixth rotation since it launched in May 2001.  

 

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