The assets under management of U.S. exchange-traded funds (ETFs) are expected to increase to about $2 trillion by the end of 2015, according to a report by BNY Mellon and Strategic Insight, Financial Times reports. The growth in ETFs is driven by new asset classes, new indexes and new ways of using ETFs as tools for portfolio construction.
As per the study, only 5% of households, which own mutual funds also own ETFs, but their usage is increasing among registered investment advisers (RIAs) and financial advisers at broker dealers. The report reveals that financial advisers were much more inclined to use ETFs in discretionary accounts, where they did not have to persuade investors of the merits of ETFs.
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