RIA ETF Adoption Shifts to Specialized Strategies
- Eldridge and BondBloxx led issuer growth as RIAs embraced alternatives.
- High-fee options and systematic trend ETFs gained traction amid volatility.
- Gold ETFs dominated thematic adoption while Bitcoin funds expanded their reach.
Registered investment advisor exchange-traded fund allocations pivoted toward specialized strategies in the first quarter as advisors prioritized downside protection and alternatives over traditional core holdings, according to the AdvizorPro Q1 2025 RIA ETF Trends report released Tuesday.
The analysis of 13F filings from 5,136 registered investment advisors showed Eldridge (formerly Panagram Structured Asset Management) posted the fastest issuer growth at 41.5%, jumping to 75 RIA clients from 53 between December and March, according to the report. BondBloxx Investment Management followed with 34.2% growth, expanding to 251 advisor relationships from 187.
The data reflect growing advisor appetite for non-core strategies as thematic and tactical ETFs tied to commodities, options trading and macro-driven exposures outperformed amid inflation resilience and geopolitical risk concerns, according to the report.
COWG, Specialized Strategies Lead
Among individual funds, the Pacer US Large Cap Cash Cows Growth Leaders ETF (COWG) led growth with a 46% increase in RIA adoption, rising to 146 advisors from 100, according to the report. The large blend ETF benefited from advisor interest in factor-based exposure with defensive characteristics.
Options-based strategies gained momentum across multiple issuers. The FT Cboe Vest U.S. Equity Moderate Buffer ETF - February (GFEB) climbed 24.1% in RIA count, while the Innovator International Developed Power Buffer ETF - October (IOCT) posted 19.7% growth, the report showed. Both funds charge an expense ratio of 0.85%, well above traditional passive offerings.
The Simplify Managed Futures Strategy ETF (CTA), a systematic trend-following fund with a 0.78% expense ratio, attracted 43 new RIA clients for 41.8% growth, demonstrating advisor willingness to pay premiums for differentiated strategies, according to the report. CTA uses rules-based trend-following designed to provide downside protection.
Bond, Commodities, Crypto ETFs Favored
Ultrashort bond ETFs captured advisor interest as rate uncertainty persisted. The BlackRock AAA CLO ETF (CLOA) grew 21.6%, while the VanEck CLO ETF (CLOI) expanded 18.6%, the report found. These funds offered cash alternatives as advisors positioned for potential Federal Reserve policy shifts.
Thematic adoption favored commodities exposure, with the SPDR Gold Trust (GLD) adding 115 new RIA appearances and the iShares Gold Trust (IAU) gaining 109, according to the report. Gold ETFs maintained appeal as inflation hedges despite mixed economic signals.
Bitcoin exposure through the iShares Bitcoin Trust (IBIT) grew by 56 appearances to 1,024 RIA portfolios as digital-asset access expanded through custodial platforms, according to the report.
The data revealed only 41.8% of RIAs increased their ETF count during the quarter, down from 66.9% in the prior 12-month period. Meanwhile, 37% of firms reduced holdings, pointing to tactical concentration rather than broad diversification.
Editor's Note: This article was updated June 11, 2025, to reflect Panagram Structured Asset Management's new name, Eldridge.
