Survey: Advisers Want More ETFs On Platforms

Survey: Advisers Want More ETFs On Platforms

82% of advisers believe ETFs need to be more widely available on platforms

Editor, Europe
Reviewed by: Rachael Revesz
Edited by: Rachael Revesz

The vast majority of financial advisers in the UK want to see more choice of exchange traded funds (ETFs) on the investment platforms they use, according to new research.

ETF provider Source asked 103 financial advisers in August whether they want ETFs to be more widely available on platforms and 82 percent said yes. A total of 28 percent said there should be a “significant increase” in the number of ETFs on platforms.

When asked about their clients, 42 percent of IFAs believe their clients have no exposure to ETFs, but 34 percent of respondents expect their clients to invest more in ETFs over the next year.

More advisers favour mainstream ETFs for their clients – 33 percent – while active ETFs gain less favour – 15 percent. Only 6 percent of advisers have recommended smart beta ETFs to clients. And just 5 percent recommended alternative benchmark ETF.

The Retail Distribution Review, implemented in January 2013, has pushed 9 percent of IFAs to make a decent increase in their clients’ exposure to passive investments, while around a third have only made a small increase.

The findings are similar to research carried out earlier this year by, Brown Brothers Harriman and Deutsche Bank, which found that out of more than 130 financial planners, only half of the respondents are either very or reasonably satisfied with their platform’s selection and trading of ETFs.

Rachael Revesz joined in August 2013 as staff writer. Previously an investment reporter at Citywire, she has a background in writing content for retail financial advisors and has covered a wide range of subjects in finance. Revesz studied journalism at PMA Media, which has since merged with the Press Association. She also holds a B.A. in modern languages from Durham University, as well as CF1 and CF2 financial planning certificates from the CII.