Fundsters interested in distribution of ETFs through broker-dealers may want to take a look at the latest revelation from Strategic Insight. Yesterday the New York-based research firm released a new report, "How Financial Advisors Use ETFs," showing that ETF use by advisors with national broker-dealers is highest amongst advisors using discretionary wrap programs (i.e. fee-based advisory programs where the advisor makes decisions on behalf of clients).

InvestmentNews' Jessica Toonkel also reported on the findings.

According to Strategic Insight, at national broker-dealers ETFs accounted for a whopping 54 percent of retail fund assets in discretionary wrap programs (which Strategic Insight refers to as "Rep-as-PM" programs) but only 25 percent of overall (discretionary and non-discretionary) wrap programs. Senior research analyst Loren Fox, author of the report, explained that "advisors working in Rep-as-PM programs don't need to persuade clients to use ETFs."

The report also examined what types of ETFs national B-D reps are using in wrap programs and where the new ETF assets are coming from. 

Edited by: Neil Anderson, Managing Editor


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