Active ETF usage has risen substantially since Q1 2022, with 60% of advisors currently using these products. However, purchase intent for Active ETFs has dipped to 69% in Q1 2023 after staying over 80% consistently in 2022. These insights were derived from a Q1 2023 online study conducted by Mitre Media, publisher of MutualFunds.com and Dividend.com, and indicate a need for continued education and thought leadership by asset management firms who offer active ETFs.
The study also indicated that a majority of respondents (146 advisors and 770 retail investors) believe that Active ETFs will outperform Passive ETFs in the next year, likely indicating a preference for active management under current market conditions, but also an indication of a rising acceptance of the relatively new active ETF product type.
Other survey highlights include:
- A small but significant percentage of advisors (19%) say they won’t allocate to actively managed mutual funds, specifically, in the Q2-Q3 2023 timeframe.
- Advisors anticipate that dividend and income strategies will drive most of their Active ETF and overall portfolio allocations in Q2-Q3 2023.
Advisors indicated a high intent to allocate to equities in the coming months (71% of advisors), followed by cash and cash-like instruments and bonds. Retail investors said they will also favor equity allocations (75%) and are more likely to use an equity-based active ETF (41%) than a bond ETF (15%) in the next six months.
The Mitre Media Advisor Trends Study has been conducted quarterly since Q1 2022 and provides valuable insights into the attitudes of investors and advisors on subjects like the economy and product usage.
For more information about the study, please email Mitre at [email protected]