New research from Source reveals that over the past 12 months, nearly one in five (18%) financial advisers say their clients have increased their exposure to ETFs as opposed to 3% who have seen clients reduce it. Over the next year, one in three (34%) IFAs expect clients to increase their exposure to these investment products compared to 4% of IFAs who anticipate exposure will fall….
Some 59% of IFAs say that lower charges give ETFs an advantage over other investment funds, and this was followed by 21% who said it was about innovation, and 13% who cited the wide choice of ETFs available.
These findings are supported by new data from the London Stock Exchange (LSE), which reveals there are currently more than 1,200 ETFs and ETPs listed on its main exchange and that the total value of ETFs traded on-exchange this year is £175.7 billion.
Gillian Walmsley, Head of Listed Products at the LSE, said: “London has long been seen as the capital of the ETF industry in Europe, with deep liquidity and a strong emphasis on promoting transparency. In 2015, 101 new ETFs and 25 new ETPs listed on the LSE. Total on-exchange value traded for ETFs this year is up 61% compared to the same period last year.”
Lee Kranefuss, Chairman of Source, commented: “We are delighted by the strong inflows we have seen into our ETFs, but our research shows that the UK and European market has huge potential for further growth. In a poll of more than 100 IFAs in the UK, 14% of them said they do not fully understand ETFs, and 34% said that their clients do not fully understand them.
Earlier this month, Source announced that it has appointed a five-strong team to service the UK financial advisory market. The new team comprises Dominic Clabby, Director, who was formerly Development Director at AXA Elevate where he focused on building and developing relationships in the UK advisory market; Damian Yeomans, Director, formerly Associate Director at HSBC Global Asset Management; Chris Norsworthy, Director, formerly responsible for intermediary coverage at Margetts Fund Management; Ngozi Onyenemelu, Marketing Associate for UK and Ireland, formerly Senior Client Communications Executive at Henderson Global Investors; and Antoine Boulet, Coverage Analyst, who previously worked at Societe Generale on structured products distribution.