Advisors are increasing allocations to ETFs as they become more comfortable with the product and its use across a broader range of asset classes, according to the latest edition of The Cerulli Edge-U.S. Monthly Product Trends.
According to the study, which analyzes ETF flows up to July 2024, nearly all advisors (90%) use the product in some way.
On the other hand, while active managers can add value, 61% of advisors agree or strongly agree that it is difficult to identify active managers who consistently outperform the indices.
Hybrid RIAs advisors allocate the highest percentage of assets to actively managed ETFs across all channels, and numerous asset managers are dedicating resources to expanding their product range to include more active ETFs.
In July, mutual fund assets grew by $332 billion (1.7%) over $39.5 billion in total net outflows, representing an organic growth rate of -0.2%.
Total asset growth for 2024 is $1.6 trillion, despite total net outflows of $175 billion.
Additionally, during July, ETF assets grew by $329 billion (3.6%), with $119 billion attributed to net inflows, marking their second strongest month in history.
In 2024, ETFs assets have increased by $1.4 trillion (16.8%), with total net flows of $526 billion, representing an organic growth rate of 6.5%, concludes the report.
