## [# ETF Industry Growth Reshaping Advisors’ Practices ](/sections/features/etf-industry-growth-reshaping-advisors-practices)
# ETF Industry Growth Reshaping Advisors’ Practices
Bullish proponents of ETFs expect their assets to reach $18 trillion worldwide by 2027.
[](/contributors/michelle-lodge)
[By Michelle Lodge](/contributors/michelle-lodge)
May 10, 2023
Edited by: Ron Day
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As the exchange-traded fund industry has grown to hold nearly $7 trillion in assets over 30 years, its impact has been felt keenly by financial advisors.
ETF assets in the U.S. and Europe grew 16% annually between 2016 and last year, with their expansion far exceeding that of mutual funds, which saw a 5% upswing annually over the same period, according to the consultancy [OliverWyman](https://www.oliverwyman.com/media-center/2023/apr/etfs-to-account-for-24-percent-of-total-fund-assets-by-2027-reveals-new-study.html). The firm also noted that ETFs will make up 24% of total assets by 2027, up from 17% at the end of April 2023.
The U.S. is the main driver of this ETF growth, fueled by widespread adoption by financial advisors, many of whom are gung-ho about ETFs, due to the tax advantages for their clients and the ease of executing them, leading to a reduced workload at their practices.
ETFs have enabled advisors like Angela Palacios to cut clients’ expense ratios by more than half to .36%, from .74% in 2015.
“This results in more money in the pocket of the end investor,” Palacios, a partner and CFP at the Center for Financial Planning in Southfield, Michigan, told etf.com in an email.
The future of ETFs is solid, according to consultancy PwC Global’s [ETFs 2027: A World of New Possibilities](https://www.pwc.com/gx/en/industries/financial-services/publications/future-of-etf-2027-survey.html), whose study mostly polled ETF managers and sponsors. While 70% of respondents expect ETF assets to grow to $15 trillion by June 2027, a more bullish group, 29%, believe ETF assets will more than double to reach at least $18 trillion by the same date. These numbers represent a compound annual growth rate of nearly 12% and almost 16%, respectively.
Palacios said using ETFs means less work for the practice, especially in late December, when many staff members want to take time off: “Because of the structure of an ETF, we no longer have those surprises at the end of the year that we have to work around for a large amount of the positions we hold for a client’s taxable portfolios.”
The product is also a big time saver for financial advisors, according to Robin Giles, CFP, with Apex Wealth Management, in Katy, Texas.
She said being able to place ETF trades throughout the day is a huge improvement: “Before ETFs, I would have to place buy and sell orders over two days. Now, those transactions can be done within minutes.”
*Follow Michelle Lodge on Twitter @lodgemich*
[ Michelle Lodge ](/contributors/michelle-lodge)
Michelle Lodge is a journalist who is a contributor to many sites: Fortune, Money, Time, Barron’s, Investopedia, CNBC.com and Bloomberg.com. [View Bio](/contributors/michelle-lodge)
Related Topics [Advisor Center](http://www.etf.com/topics/advisor-center-0)