New York
02 November 2015
Reporter: Drew Nicol

Retail channels see ETF growth


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’s 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.

“ETF assets continued year-on-year growth through the third-quarter, despite the worst stock market drop since 2008, with advisors accounting for the lion’s share of investment,” said Frank Polefrone, senior vice president of Broadridge’s Access Data product suite.

“This 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.”

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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