This recent Greenwich Associates study titled, "ETFs Gain Foothold in Institutional Market" is a piece written on how traditional institutions such as Endowments & Foundations, Corporate Pensions and Public Pensions are utilizing ETFs in the US for portfolio management tasks as tactical adjustments, transitions, cash equitization, etc. Hopefully this concise study provides additional context on how and why institutions are utilizing ETFs as well as the future of the institutional ETF market.
Below are a few key takeaways from the piece:
- 14% of U.S. Pensions, Endowments & Foundations now report using ETFs.
- The top three uses amongst plan sponsors include tactical adjustments, transitions, cash equitization.
- Four factors institutions rank as most important when selecting an ETF provider: Liquidity, benchmark, track record of the fund, reputation of the company behind the fund.
- 55% of the institutions surveyed expect their use of ETFs to increase in the next 3 years including 18% which expect their use to increase by 5-10%
- Nearly 30% of institutions that do not use ETFs cite lack of familiarity with the product as their primary reason.
Submitted by Greenwich Associates
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| Attachment | Size |
|---|---|
| GA-ETFs-Gain-Foothold-in-Institutional-Market.pdf | 99.36 KB |
