I recently posted about how ETFs are increasingly challenging mutual funds for asset flows and a place in client portfolios. On the heals of my post, the Financial Times came out today with an article describing the trend that is underway in which high-net worth clients utilize ETFs as part of their portfolio allocation.
Be sure to check-out my prior post on ETFs here.
The Financial Times article quotes an executive from BlackRock saying that in the wealth management space, non-US ETFs, which currently only account for 15% of that ETF business will grow to encompass 25% of total non-US ETF business “in the next few years”. This appears to support my premise that ETFs have a strong marketing message that works in their favor and that traditional mutual mutual fund only asset managers are facing a challenge to their core product offering.
What’s your position on the use of ETFs in high-net worth client portfolios?
Do traditional mutual mutual fund only asset managers have anything to worry about?
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