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ETFs Remain the Most Popular Investment Vehicle Among Advisors

June 13, 2019

ETFs remain financial advisors’ favorite investment for the fifth year in a row, while almost no advisor considers cryptocurrencies worthy of including in portfolios, according to a recent survey.

Eighty-eight percent of advisors say they’re using or recommending ETFs to their clients, according to a survey conducted by the Financial Planning Association, the Journal of Financial Planning and the FPA Research and Practice Institute, FA magazine writes. That’s compared to 40% of advisors who said they were using or recommending ETFs in 2006, according to the publication. What’s more, 45% of the 392 financial advisors polled say they plan to increase their use or frequency of recommending ETFs over the next 12 months — while 23% say they plan to reduce the use of individual stocks, the survey found, according to FA magazine.

ETFs remain the most popular among 22 investment options, according to the survey, the publication writes. Clients, meanwhile, are also interested in alternative investments: 55% of advisors report getting questions about cannabis-related companies, 35% say they have clients asking about environmental, social and governance and socially responsible investing, and 25% are fielding questions about cryptocurrencies — a steep drop-off from the 53% who were asked about crypto in 2018, FA magazine writes, citing the survey.

Advisors are even more skeptical about cryptocurrencies: only 1% of those polled consider them “a viable investment option,” FPA writes, according to the publication.

By Alex Padalka
  • To read the FA magazine article cited in this story, click here.